GFG is an online fashion marketplace that owns regional e-commerce platforms such as Zalora and The Iconic. It has raised €375 million via unsecured convertible bonds issued at 100% of principal with a 1.25% coupon payable twice a year. The company said proceeds will be invested in technology to speed its marketplace and e-commerce business, expand into additional categories, and improve delivery and returns. GFG reported its maiden profitable year and said gross profit jumped 44% to €183 million in the three months ended 31 December 2020. Revenue was €1.16 billion, and GFG operates across four continents with over 10,000 employees. In November 2020 the group raised about €120 million through a share placement, and management said the additional finance supports a target of becoming a €10 billion net merchandise value business within seven to nine years. Global Fashion Group (GFG) is an international e‑tailer operating Zalora, The Iconic, Dafiti and Lamoda. The company plans to use newly raised capital to expand its marketplace and to invest substantially in its fashion business, technology and operations. GFG says its marketplace share of group net merchandise value has trebled since 2017 to 34% in Q3 2020, supporting the decision to accelerate investment. Management has flagged accelerated growth this year and expects to deliver its maiden EBITDA‑positive year, potentially a year ahead of prior guidance. GFG reported revenue of €1.16 billion, operates across four continents and employs more than 10,000 people. The company frames the raise as a sign of investor confidence in its strategy. Global Fashion Group (GFG) is a merged portfolio of Rocket Internet’s fashion e-commerce businesses operating in emerging markets, including Dafiti, Lamoda, Namshi, The Iconic, Jabong and Zalora. GFG was formed in 2014 as part of Rocket’s effort to organize its global e-commerce operations. The business remains unprofitable but has been taking steps to trim operations and improve margins. Management says the company has reduced its loss from operations and improved Adjusted EBITDA margin by over 10 percentage points year‑over‑year in Q1 2016 versus Q1 2015. GFG’s stated strategy is to continue building out leading market positions in online fashion across its regional businesses while accelerating the path to profitability. CEO Romain Voog, who joined last year from Amazon France, is leading those efforts. Global Fashion Group is a fashion e-commerce company focused on emerging markets, offering a wide assortment of international and local fashion brands alongside internal brands. Founded in 2011 by Investment AB Kinnevik and Rocket Internet and led by CEO Romain Voog, the company operates across four continents and 27 countries and employs over 9,500 people. GFG sells fashion through localized online platforms and has pursued consolidation and scale in markets including Latin America, the Middle East, Russia and CIS, India, Southeast Asia and Australia. The company intends to use newly raised funds to solidify its position in emerging markets and to strengthen fulfilment, marketing, product development and the infrastructure needed to capture synergies between its regional businesses. As part of its strategic moves, GFG is integrating two Brazilian businesses, Kanui and Tricae, into Dafiti; Kanui generated more than €30m of net revenues in 2014 and Tricae generated more than €20m in 2014. The financing and strategic acquisition imply a post-money valuation of €3.1 billion. Global Fashion Group (GFG) consolidates five regional fashion portals—Dafiti, Jabong, Lamoda, Namshi and Zalora—serving emerging markets with apparel, accessories and growing private-label assortments. The group collectively covers 23 countries, reaching about 2.5 billion people and an estimated fashion market value of €330 million. GFG is approaching 5 million active subscribers, although none of the individual operations are yet profitable. The company has raised €32 million ($35M) at a €2.8 billion ($3B) post-money valuation to support margin-improvement efforts. Management plans to invest the capital in higher-margin services such as private labels, make stock deals, and fund operational initiatives that can be applied across the group. The consolidation aims to capture economies of scale across payments, call centers, last-mile delivery and other shared functions to accelerate the path to profitability.

Total raised

$1.1B

Funding rounds

5

Latest round

Debt Financing

Latest activity

Mar 2021