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Farfetch Platform Solutions raises $ 250 million to accelerate international growth

Farfetch Platform Solutions raises $ 250 million to accelerate international growth

Farfetch Limited announced a $ 250 million raise by selling senior convertible notes to Tencent, a technology company based in Shenzhen, and to Dragoneer, an investment company based in San Francisco.

By Luxus Plus

 

According to a statement by Farfetch, the Tencent and Dragoneer companies have agreed to buy $ 125 million worth of shares each. In addition to increasing the company’s liquidity, private equity will support its long-term strategy as it aims to become a global technological platform for luxury brands, including on the Chinese market, currently in difficulty.

 

The luxury fashion technology company is currently working with more than 80 high-end brands on WeChat, including Moncler, Balenciaga, Saint Laurent, Armani and Ralph Lauren, the company said in its press release.

 

Tencent’s investment in Farfetch strengthens the relationship between the two companies, which could help the fashion platform as it attempts to develop in the Chinese market. It also intervenes after the launch last June by the platform of a store on the Chinese market JD.com.

 

José Neves, Founder and CEO of Farfetch, said in his report: “Tencent’s deep technological expertise and its ongoing relationship with Farfetch, combined with Dragoneer’s expertise in supporting growth-oriented technology companies, make two investors from exceptional partners to support the next chapter in Farfetch’s growth.”

 

He then stated : “As we continue to implement our long-term strategy, we believe that this investment helps Farfetch to seize the important opportunity we see and to develop our business to achieve profitability in the medium term”. The liquidity injection also comes after the company has successfully acquired similar platforms.

 

See Also

The Company acquired Stadium Goods for $250 million in cash and Farfetch shares in December 2018 after filing for an initial public offering in August of that year.

 

The platform then bought JD.com’s Toplife from Farfetch China in February 2019 and New Guards for $675 million in cash and Farfetch shares in August 2019. It remains to be seen whether the company’s strategy of raising capital and capturing similar young start-ups will be profitable.

 

Read also > Farfetch acquires JD.com, Interparfums increases its turnover and the other news of the day

 

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