Global Fashion Group raises US$143 million to fund growth
Global Fashion Group, the parent of online fashion marketplaces The Iconic and Lazada, along with sites in Europe and Latin America, has raised US$143 million from a share placement, funds it says it will deploy in speeding its growth.
The fresh funds arrive as the company eyes its first full year of profit, 12 months ahead of its original guidance.
“This capital raise is a vote of confidence by our investors in our strategy and execution track record,” said co-CEO Christoph Barchewitz. “With more than 15 million customers, a record share of NMV (net merchandise volume) coming from our marketplace channel and an unparalleled selection of fashion and lifestyle brands in our markets, we believe now is the right time to invest further in our customer value proposition, technology platform and operational infrastructure.”
GFG’s marketplace business has tripled its share of group NMV, during the last three years and some of the fresh funds will be deployed to technology and operations in that and its other division, fashion services.
Fellow co-CEO, Patrick Schmidt, said that operating in growth markets with some of the lowest fashion and e-commerce penetration in the world, and more than 1 billion consumers, GFG’s potential for growth is huge.
“With this transaction, we have even more firepower to accelerate fashion e-commerce adoption and to fuel the next chapter of our growth.”
GFG’s non Asia-Pacific sites are Dafiti and Lamoda. In the year to September, the company delivered 39.1 million orders to 15.4 million active customers worldwide.