Jabong’s owner raises €150 million from existing investors
The company that runs online fashion storeJabong.com has raised €150 million (aboutRs.1,060 crore) from its existing investors,Investment AB KinnevikandRocket Internet SE, valuing the German group at €3.1 billion.
Global Fashion Group(GFG), which houses the German e-commerce company’s fashion businesses from emerging countries, has also acquired two Brazilian online fashion businesses —Kanui and Tricae—in an all-stock deal, Kinnevik and Rocket Internet said in a joint statement on Wednesday.
The recent round of funding and acquisition will dilute Rocket Internet’s stake in the venture to 21.9% from 23.5%, while Kinnevik will own at least 25% in the joint venture.
Formed in 2011, GFG includes India’s fashion website Jabong, Latin America’sDafiti, Russia’s Lamoda, Namshi of the Middle East and Zalora of South-East Asia and Australia.
The recent round of funds will help GFG solidify its position by investing towards strengthening of GFG’s fulfilment, marketing and product development.
GFG will also use this capital towards “building the infrastructure to capitalize on the synergies between GFG’s market-leading online fashion businesses in Latin America, Middle East, Russia and CIS (Commonwealth of Independent States), India, South-East Asia and Australia”, according to the statement.
“As Global Fashion Group’s largest shareholder, we’re proud to be leading the financing round to ensure its continued success as the leading emerging-markets fashion e-commerce company,” saidLorenzo Grabau, chief executive of Kinnevik and chairman of GFG.
“The additional capital will give us an exceptionally strong runway and allow us to capitalize on the massive growth opportunity of fashion e-commerce in emerging markets. In addition, the strategic acquisitions of Kanui and Tricae enable the integration of two great businesses that have a natural fit with our Latin American brand Dafiti and are acquired at attractive terms,” said Romain Voog, chief executive of GFG.
Founded in 2011, Kanui is a sports and outdoor e-commerce business in Brazil with focus on the surf-and-skate lifestyle verticals. It also sells regular fashion apparel as well as various sports equipment.
According to the statement, Kanui generated more than €30 million of net revenue in 2014 and is growing rapidly.
Tricae, founded in 2011, is a children and baby products e-commerce company that generated more than €20 million of net revenue in 2014. The two businesses will be integrated into Dafiti in Latin America.
GFG currently operates across four continents and 27 countries and employs over 9,500 people.
With a focus on emerging markets, GFG targets a €630 billion fashion market and over 2.5 billion people who rapidly continue to move online for making purchases.