The company that runs South East Asian and Australian online fashion store Zalora has raised €150 million from its existing investors,Investment AB Kinnevik and Rocket Internet SE, valuing the German group at €3.1 billion.
Internet platform giant Rocket Internet SE said it would be joining the $166.8 million (Euro 150 million) internal financing round for 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.
It will invest its pro rata share of the financing round amounting to Euro 37 million and has undertaken to guarantee an additional part of the financing round amounting to a maximum commitment of Euro 49 million, the statement added.
The German-based company added that it agreed to contribute to the two Brazilian online fashion businesses Kanui and Tricae from its Latin America Internet Group (in a share for share transaction) to realise further synergies.
“The financing round and the strategic acquisition value of GFG is in line with the most recent investment, and imply a post-money valuation of Euro 3.1 billion. Rocket Internet will hold at least 24.2 per cent of after the financing round and the strategic acquisition,” Rocket Internet said in its statement.
Rocket Internet will hold 21.9 per cent minimum directly and 2.3 per cent indirectly through Latin America Internet Group.
The company said that the proceeds will mainly be invested to strengthen GFG’s fulfilment, marketing and product development as well as to build the infrastructure to capitalize on the synergies between GFG’s market-leading online fashion businesses in Latin America, Middle East, Russia & CIS, India, South East Asia and Australia.
“The additional capital will give us an exceptionally strong runway and allow us to capitalise on the massive growth opportunity of fashion e-commerce in the emerging markets,” said GFG’s CEO Romain Voog.
Rocket Internet CEO Oliver Samwer said they continue to be very excited about the prospects of international online fashion and GFG in particular. “Romain and his team have made great progress in integrating the international businesses and the acquisitions of Kanui and Tricae will add further to GFG’s presence and ability to realize synergies,” Samwer said.
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Founded in 2011, Kanui is a sports and outdoor e-commerce business in Brazil, focusing on the attractive surf and skate lifestyle verticals, but also on regular fashion apparel as well as various sports equipment.
Reports say that it is segment that is growing rapidly and the company will generate more than Euro 30 million of net revenues in 2014.
Tricae is a kids and baby e-commerce company founded in the same year in Brazil. It generated more than Euro 20 million of net revenues in 2014.
Both businesses will be integrated into Dafiti, GFG’s market leader in Latin America.