Global Fashion Group, GFG, one of Rocket Internet’s composite eCommerce group focusing on fashion has announced that another round of EUR330 million was raised from existing investors.
In a release by Rocket Internet, the company said the itself invested EUR68 million to keep its stake in GFG at 20.4%.
The remaining part of the funding was provided by Rocket Internet Capital Partners fund, RICP. Rocket Internet said that the round was over-subscribed, therefore the “initial underwritten minimum capital raising of EUR300 million was increased to EUR330 million”.
Moreover, the round has revalued GFG to EUR1.0 billion post the investment. This is a fall of 68% in the valuation of GFG because its initial value was EUR3.4 billion.
Commenting on the development, Oliver Samwer, CEO of Rocket Internet said “GFG has successfully built its position as market leader in online Fashion in many key emerging markets”.
“The recent funding round provides GFG with the necessary capital to continue on that path. We are looking forward to continuing to work with the GFG team as well as Kinnevik and the other GFG shareholders.” he added.
It would be recalled that GFG raised EUR300 million in mid April from Rocket Internet SE and Kinnevik. Venturebeat.com reported that Kinnevik back out of this round and concluded to pull out its representatives from the GFG board.
Earlier this month, Rocket Internet had shutdown Africa Internet Group, AIG, its eCommerce group focusing on Africa, collapsing it into Jumia.
GFG is one of the leading online Fashion businesses in emerging markets. It combines six leading regional online fashion businesses, Dafiti in Latin America, Lamoda in Russia and GUS, Namshi in the Middle East, The Iconic in Australia, Jabong in India and Zalora in South-East Asia.
Rocket Internet builds and invests in Internet companies that take proven online business models to new, fast-growing markets.
The company focuses on five industry sectors of online and mobile retail services that make up a significant share of consumer spending: Food & Groceries, Fashion, General Merchandise, Home & Living and Travel. Its network of companies operates a variety of business models in over 110 countries on six continents with more than 36,000 employees at the end of 2015.
Rocket Internet SE is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET).
Featured image source: GFG
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