Global Fashion Group (GFG), the fashion-focused holding subsidiary of Germany-based e-commerce group Rocket Internet, has raised “at least” €300m ($339m) in funding from its existing investors, Rocket confirmed today.
Rocket Internet itself is investing up to $113m as part of the round, though it expects to contribute approximately $96m.
Founded in 2014, GFG groups together six Rocket Internet e-commerce properties – Brazil-based Dafiti, Russia-based Lamoda, United Arab Emirates-based Namshi, Australia-based The Iconic, India-based Jabong and Singapore-based Zalora – into a company that covers 27 countries.
GFG last raised funding in July 2015 when it secured $167m from Rocket Internet and investment firm Kinnevik. It had raised $34.6m from Tengelmann Ventures, the corporate venturing subsidiary of retail chain Tengelmann, and family office Verlinvest three months before.
Past investors in GFG also include conglomerate Access Industries, growth equity firm Summit Partners and Ontario Teachers’ Pension Plan.
Romain Voog, chief executive of GFG, said: “We very much appreciate the continued support of our key existing investors in GFG. The financing will provide GFG with the necessary capital to continue to execute its strategy of building out its leading position in the online fashion sector in emerging markets.”
The round is set to be closed at a $1.13bn post-money valuation, down some 67% from the $3.4bn valuation at which it last raised money in July 2015. Voog told the Wall Street Journal the drop was likely due to GFG’s unprofitability, the falling share prices of publicly-listed competitors and the fact it mainly operates in emerging markets.
Rocket Internet also confirmed to Tech in Asia today that it has sold Zalora’s holdings in Thailand and Vietnam. It did not disclose the price, but a TechCrunch report earlier this week pegged it at about $10m for each of the two subsidiaries.