Eurazeo makes US$20 million investment in Farfetch
today May 4, 2016
Investment company Eurazeo Croissance said on Wednesday it has become a minority shareholder in luxury goods marketplace Farfetch.
Eurazeo paid Farfetch US$20 million, which add to a larger investment by international investors such as IDG Capital and Temasek that raised a total of US$110 million.
Farfetch plans to use the capital raised to develop its omni-channel retail and drive international growth in the Asia-Pacific Zone, where 26% of its revenue is generated.
Virginie Morgon, Deputy CEO of Eurazeo, declared: “We were enticed by the Farfetch model which covers the sectors in which we have already gained a solid foothold: digital technology, luxury goods and brand names. In addition to its international profile, multi-channel model and its perfect understanding of the rules governing the luxury goods industry, we were very impressed by the company’s ground-breaking business model and the quality of its implementation, particularly from a technological perspective.”
The luxury destination connecting brands and multi-brand boutiques with customers in nearly 190 countries offers more than 100,000 items and over 1,000 brands.
“We firmly believe in the growth potential of luxury goods on digital media, and Farfetch is a pivotal player in this sector. We are delighted to be able to help accelerate its growth trajectory, alongside José Neves, his team, and this group of prestigious investors,” added Virginie Morgon, Deputy CEO of Eurazeo.
José Neves, Founder and Chief Executive Officer of Farfetch stated: “I am delighted to have Eurazeo join as an investor… We believe Eurazeo is going to be a transformational partner for Farfetch.”
Since its launch, the company has expanded very rapidly, with business volume growth of over 70% in 2015, thanks to its multi-channel model enabling customers to buy online and collect or return items in stores, its extensive catalogue and broad customer base.
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