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 in a share for share transaction to realize 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 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.
Kanui is a sports and outdoor e-commerce business in Brazil founded in 2011 mainly focusing on the attractive surf and skate lifestyle verticals, but also on regular fashion apparel as well as 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. It 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 GFG in line with the most recent investment, and imply a post-money valuation of €3.1 billion. Rocket Internet will hold at least 24.2% of 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 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.”
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.”