HomeAcquisitionsGermany-based Global Fashion Group announces a €150 million internal financing round

Germany-based Global Fashion Group announces a €150 million internal financing round

Rocket Internet today announced that it is participating in a €150 million internal financing round in Global Fashion Group (GFG), together with a group of shareholders including Investment AB Kinnevik. Furthermore, Rocket Internet has agreed to contribute the two Brazilian online fashion businesses Kanui and Tricae from its Latin America Internet Group for a share transaction to realise further synergies.

The financing round provides GFG with additional capital to solidify its position as one of leaders of fashion e-commerce in emerging markets. The proceeds will mainly be invested to strengthen GFG’s fulfillment, marketing and product development, as well as to build the infrastructure to capitalise on the synergies between GFG’s market-leading online fashion businesses in Latin America, Middle East, Russia & CIS, India, South East Asia and Australia.

Kanui is a sports and outdoor e-commerce business in Brazil, which was founded in 2011, and mainly focuses on the attractive surf and skate lifestyle verticals, but also on regular fashion apparel and various sports equipment. Kanui is growing rapidly and generated more than €30 million of net revenues in 2014. Tricae is a kids and baby e-commerce company in Brazil founded in 2011, which generated more than €20 million of net revenues in 2014. The two businesses will be integrated into Dafiti, GFG’s ‘market leader’ in Latin America.

The financing round and the strategic acquisition value imply a post-money valuation of €3.1 billion. Rocket Internet will hold at least 24.2% in the group after the financing round and the strategic acquisition.

Romain Voog, CEO of GFG, commented: “The additional capital will give us an exceptionally strong run-way and allow us to capitalise 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.”

Lorenzo Grabau, Chairman of GFG and CEO of Kinnevik, commented: “We are very pleased with the progress that the management team of Global Fashion Group has made in terms of capturing the substantial growth opportunities in its 27 markets. As Global Fashion Group’s largest shareholder, we are proud to be leading the financing round to ensure its continued success as the leading emerging markets fashion e-commerce company.”

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Thomas Ohr
Thomas Ohr
Thomas Ohr is the "Editor in Chief" of EU-Startups.com and started the blog in October 2010. He is excited about Europe's future, passionate about new business ideas and lives in Barcelona (Spain).

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