Luxembourg-based fashion e-commerce holding company Global Fashion Group (GFG) secured €150m ($167m) in funding today from internet holding company Rocket Internet and investment firm Kinnevik.
The investment values the company at about $3.4bn and gives Rocket Internet a 21.9% stake, while Kinnevik will hold 25%.
GFG is the result of the September 2014 merger of five regional online fashion businesses formed by Rocket Internet and Kinnevik that had jointly raised more than €1bn.
The companies are Dafiti, which covers Latin America, India-based Jabong, Lamoda, which operates in Russia and the Commonwealth of Independent States, Namshi, which caters for a Middle East customer base, and Zalora, which sells to Southeast Asia and Australia.
GFG has also revealed it is set to acquire online sporting and outdoor goods retailer Kanui and mother and child e-commerce company Tricae in share-for-share transactions. The companies, both based in Brazil, will be integrated into Dafiti.
The fresh capital will support GFG’s fulfilment and marketing efforts, as well as product development. Part of the funding will also go towards building the infrastructure required to fully exploit the synergy between its different regional outfits.
GFG previously secured $34.6m in April this year from Tengelmann Ventures, the corporate venturing arm of retail group Tengelmann, and Verlinvest, the office of one of beverage company Anheuser-Busch InBev’s founding families. Conglomerate Access Industries is also a GFG shareholder.
– Image courtesy of Global Fashion Group