AAA Farfetch comes back for $110m

Farfetch comes back for $110m

UK-based fashion e-commerce company Farfetch has closed a $110m series F round co-led by IDG Capital Partners, the Chinese venture capital affiliate of US-based media company International Data Group.

IDG co-led the round with investment firm Eurazeo and Singaporean-state owned investment firm Temasek, while private equity firm Vitruvian Partners also participated. Farfetch announced the funding today, after it had been reported by Business of Fashion (BoF) yesterday.

The round values Farfetch at about $1.5bn, market sources told BoF, up from the $1bn valuation at which the company last raised funding in March 2015. It comes two months after Farfetch secured a $50m loan facility with TriplePoint Venture Growth BDC Corp.

Founded in 2008, Farfetch operates an e-commerce business that sells fashion products from some 400 designer boutiques across the world together with brands from more than 37 countries.

The company, which increased its transaction value over 700% to $500m over the course of 2015, plans to use the funding to further develop its platform and expand internationally.

In addition to investing, IDG Capital and Temasek will help Farfetch to enhance its presence in China, which represents its second largest market, and the rest of Asia. China is responsible for 12% of Farfetch’s sales while the Asia Pacific region makes up an additional 14%.

José Neves, Farfetch’s founder and CEO, told BoF: “If you look at the partners we now welcome on board, like Temasek, which has a huge, huge influence in Southeast Asia and investments in all the major Asian internet players, and IDG Capital Partners – same thing – it is definitely a strategic move.

“They know all the players there and it makes things easier for partnerships, for hiring, for insights.”

Alexandre Quirici, partner at IDG Capital Partners, added: “We are excited to back José and his team in the company’s next stage of development internationally. We are particularly excited about the growth of Farfetch in China where we hope to help them achieve even greater success.”

Farfetch has now raised $305m altogether, having closed an $86m series E round led by DST Global and backed by Vitruvian and media group Condé Nast in March 2015.

Condé Nast led the company’s $20m series C round in 2013, returning for a $66m series D the following year. Advent Venture Partners, Index Ventures and E.Ventures are also past investors in Farfetch.

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