Zalora’s owner raises €150m from existing investors AB Kinnevik, Rocket Internet

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.

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.

Also read: Rocket Internet merges e-commerce biz Lamido with Lazada

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.

Also read: Rocket Internet backed Helpling acquires local rival Spickify in Singapore

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.

Also read: Rocket Internet leads Series A funding round in Indonesia’s Bridestory

“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.

Also read: Rocket, PLDT form internet JV firm

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.

Also read:

PLDT, Rocket form JV for mobile-first payment services

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.

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.