Global Fashion Group (GFG), the parent company of online fashion retailer Jabong, closed a funding round at $364 million by raising $33.1 million from its existing investors comprising of German Internet firm Rocket Internet and Swedish investment company Kinnevik AB.
Rocket Internet Capital Partners, the investment fund owned by Rocket Internet CEO Oliver Samwer, also separately invested in GFG. In May this year, GFG raised $330.9 million, the target fund size. However, the closing capital of the round was later increased to $364 million “due to high demand,” the company said.
Global Fashion Group now has a valuation of $1.1 billion, which is less than half of its worth last year (2015). GFG had a value of $3.4 billion after it raised $167 million in July, according to the Economic Times.
Rocket Internet invested $75 million in GFG with 20.4 percent stake in the company. Its stake in the company was 21.9 percent in April. Kinnevik, on the other hand, backed the company with $177.7 million and now has 35 percent stake in GFG.
“GFG has successfully built its position as market leader in online Fashion in many key emerging markets,” Business Standard quoted Rocket Internet CEO Oliver Samwer as saying.
“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 said.
The funds were raised even as talks are underway to sell Jabong. Snapdeal and Kishore Biyani’s Future Group are the top contenders to buy the online fashion store but at a much reduced price of $50 million against the selling price of $200 million.
Rocket Internet had brought Jabong and five other online fashion businesses – Dafiti in Latin America, Lamoda in Russia and GUS, Namshi in the Middle East, The Iconic in Australia and Zalora in South-East Asia – under one umbrella group, GFG, in 2014.