Farfetch has raised $110m (£75.6m) in its latest funding round to help with expansion in Asia and to build on its properietary technology platform.
This round of investment follows a very strong growth trajectory for Farfetch, which grew total transaction value more than 70% in 2015 to over US$500m, and is led by investors Temasek, IDG Capital Partners and Eurazeo.
The luxury pureplay is looking to extend its global footprint to China, which is its second largest market, Japan and other Asia-Pacific countries. China represents 12% of the e-tailer’s sales, with Asia-Pacific collectively representing a further 14%.
“The vision for Farfetch was always to seamlessly integrate physical retail with digital platforms, which we have been doing since 2008, first starting with boutiques and 12 months ago adding brands to our global platform,” commented José Neves, Founder and Chief Executive Officer of Farfetch. “This investment comes after strong inbound interest from investors, some of which we felt could really help Farfetch in our largest and fastest growing markets, or had exposure to marketplaces and luxury fashion.”
“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,” said Virginie Morgon, Deputy CEO of Eurazeo. “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. We salute the omni-channel vision and digital expertise of the management team, in particular the company’s Founder and Chief Executive Officer José Neves.”
Significant developments within the Farfetch business over the past year include expanding the site’s roster of retail partners to include direct contracts with brands in March 2015, with over 75 global brands now selling through the platform; acquiring London-based boutique Browns in May 2015 in order to create a retail-tech incubator in which to develop innovative customer experiences; and developing Farfetch Black & White, the white label platform solution, that launched its first client site ManoloBlahnik.com in March 2016.