Farfetch gets $250m investment to accelerate China growth
Tencent and Dragoneer are each investing $125 million in convertible senior notes issued by Farfetch.
The London-based fashion company said the deal supports its long-term strategy of delivering a global technology platform for the luxury fashion industry. It also expands the retailer’s partnership with Tencent as it sharpens its focus on the Chinese market.
It currently offers more than 80 luxury brands on Tencent’s WeChat, including Moncler, Balenciaga, Saint Laurent, Armani and Ralph Lauren.
The new investment underlines the importance of the Chinese market. It may be struggling to a certain extent at the moment given the disruption in Hong Kong and the tragic coronavirus outbreak, but in the long term, it remains on course to be the largest luxury market globally.
José Neves, Farfetch founder and CEO, welcomed Tencent and Dragoner to the company’s investor base. “Tencent’s deep technology expertise and ongoing relationship with Farfetch, paired with Dragoneer’s expertise in supporting growth-oriented technology companies, makes both investors outstanding partners to support Farfetch’s next chapter of growth.”
Martin Lau, president of Tencent, added: “We are excited to build on our cooperation with Farfetch and support the company as it accelerates its growth in China and enhances its customer experience and offerings in the region.”
As a leading Western shopping platform, Farfetch is keen on growing in the largely-untapped Chinese market to drive more growth and get closer to profitability.
Farfetch also has a partnership with JD.com, one of China’s largest e-commerce companies.
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