UK-based fashion e-commerce brand Farfetch is preparing to interview bankers for an initial public offering that would enable e-commerce firm JD.com to exit, CNBC reported on Tuesday citing sources familiar with the matter.
The offering could take place before the end of 2018 in New York and could value the company at as much as $5bn, the sources said.
Founded in 2008, Farfetch functions as a curated online storefront for a network of more than 700 men’s, women’s and children’s luxury fashion brands, and offers same-day delivery in several of its largest urban markets.
The company has signed commercial partnership deals with Middle East-based luxury goods retailer and distributor Chalhoub Group and fashion brand Burberry in the past week. It increased its revenue 74% year on year in 2016 to £151m ($212m at current rates), though its net loss increased to £34m.
Farfetch has raised $702m in funding in total and secured $397m from JD.com in June 2017 as part of a strategic partnership agreement.
IDG Capital and Eurazeo had co-led a $110m round for the company in 2016 that included Vitruvian Partners and Temasek, and which valued it at $1.5bn.
Publisher Condé Nast, another of Farfetch’s partners, participated in its $86m series E round in 2015 alongside DST Global and Vitruvian at a $1bn valuation, having also backed its $66m series D in 2014 and $20m series C the year before.