Rocket Internet’s Global Fashion Group raises $339m, valuation down by one-third

Global Fashion Group (GFG), a fashion e-commerce firm that operates across five regions through five leading fashion e-commerce companies- India's Jabong, Latin America’s Dafiti, Russia’s Lamoda, Namshi in the Middle East, and Zalora in South East Asia and Australia.

Rocket Internet’s ‘Global Fashion Group’ –  the holding company that comprises brands such as Lamoda, Zalora and Jabong – has raised €300 million ($339 million) from Rocket and other exiting shareholders.

The new round values the company at €1 billion, which is about a third of the valuation it had less than a year ago, when it raised €150 million.

Rocket is putting in €100 million in the round, along with Swedish investor Kinnevik.

Luxembourg-based GFG was established by Rocket and other shareholders in 2014, by merging five fashion e-commerce companies in emerging markets, including India’s Jabong, Latin American Dafiti, Russia’s Lamoda, Middle East firm Namshi, and Zalora that operates in Southeast Asia and Australia.

Rocket said that GFG’s performance has improved in the last year, with reduced losses and higher adjusted EBITDA margin.

But the ‘down round’ — raising money at a lower valuation than the previous fundraise — is an indication that investors are not willing to value GFG as before, perhaps because of its struggle to gain marketshare in the emerging markets of Asia.

It has exited Vietnam, one of the fastest growing e-commerce and internet markets in Asia. And the Jabong business in India,considered the next big market after China, has been up for sale for months but not finding buyers even after its valuation was dragged down by a tenth in just a year. This at a time when other e-commerce companies like Flipkart and Snapdeal saw their valuations soar.

“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,” said Romain Voog, acting chief executive officer of GFG.

Voog also said that the company’s reduced losses, combined with this funding round, will help deliver an accelerated path to profitability, while expanding their businesses.

Also read:

Kinnevik plans to increase investments in India to 8-10% of its corpus

Rocket Internet looking to sell Zalora’s Thai, Vietnam ops to Central Group 

Rocket Internet posts $222m loss, retains profitability target for 2017

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.