// Alibaba seeks to invest £232m in Farfetch to expand luxury presence
// The Chinese retailer has 874 million monthly active users in China
// Alibaba’s Chinese rivals Tencent and JD.com have already invested in Farfetch
Alibaba is in talks to invest $300 million (£232 million) in British ecommerce platform Farfetch as it seeks to expand its presence in the luxury market.
The Chinese online retailer, founded by businessman Jack Ma, has 874 million monthly active users in China.
It is in advanced discussions with Farfetch, a marketplace for independent fashion boutiques, to create a Chinese joint venture.
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Swiss luxury group Richemont, which owns Cartier, currently operates a joint venture with Alibaba in China.
It is also considering investing in Farfetch alongside Alibaba.
Alibaba’s two major Chinese rivals, Tencent and JD.com have already invested in Farfetch.
Last year, it received a £314 million investment from JD.com, launching on JD.com’s online store, and in January, Tencent invested $125 million (£97 million) in Farfetch.
Farfetch shares have doubled in the past six months and surged as much as 19 per cent in New York on reports of the potential deal, which would be Farfetch’s third major investment by a Chinese retailer.
The luxury online retailer benefited from the Covid-19 pandemic, after revenues rose 74 per cent in the second quarter during lockdown.
Farfetch is due to publish its quarterly results next week.