Rocket Internet’s Global Fashion Group (GFG), the German Internet platform’s fashion-focused umbrella group, announced yesterday (July 1) that it secured €150 million ($167 million) in funding from an internal financing round. Rocket Internet also announced plans to move two of its Brazilian online fashion businesses under the GFG portfolio.
In a company release, Rocket Internet said the financing will provide GFG with the additional capital needed to solidify its position as the “leading emerging markets fashion eCommerce company.”
“The proceeds will mainly be invested to strengthen GFG’s fulfillment, 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 company statement continued.
The latest financing round and acquisition of the two Brazilian fashion eCommerce businesses, Kanui and Tricae, is set to provide GFG with an implied post-money valuation of €3.1 billion ($3.4 billion).
Romain Voog, CEO of GFG, commented: “The additional capital will give us an exceptionally strong run-way and allow us to capitalize on the massive growth opportunity of fashion eCommerce 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.”
The acquisitions will bring some unique offerings to GFG. Kanui is a sports and outdoor business, focusing on the surf and skate lifestyle verticals as well as regular fashion apparel and sports equipment. Tricae is specifically focused on the fashion stylings of kids and babies.
Rocket Internet confirmed Kanui generated more than €30 million ($33 million) of net revenues in 2014, and Tricae was not too far behind, reportedly bringing in more than €20 million ($22 million) of revenues last year.
“We continue to be very excited about the prospects of international online fashion and GFG in particular,” stated Rocket Internet CEO and Founder Oliver Samwer.
“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 added.
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