Online fashion retailers Zalora, The Iconic raise $112m
Rocket Internet’s Zalora Group has raised $112 million in funding from US-based Access Industries, Scopia Capital Management and other unnamed institutional investors. Southeast Asia-focused Zalora.com and Australia’s The Iconic are part of Zalora Group.
The capital will support efforts to scale up operations and gain an even stronger foothold throughout Southeast Asia and Australia, serving 600 million potential online shopping customers in the region.
This is the second round of funding for Zalora this year, following $100 million raised in May from Investment AB Kinnevik, Verlinvest and return backers Summit Partners and Tengelmann Group.
The company operates localised websites in Singapore, Indonesia, Malaysia, the Philippines, Thailand, Vietnam, Hong Kong and Brunei, offering over 500 top international and local brands across apparel, shoes, accessories, and beauty categories for men and women.
In 2012 Zalora had a net negative income of almost EUR70 million ($91 million), according to a confidential income statement published by Germany's Manager Magazin. Zalora Southeast Asia made EUR48 million in revenues in 2012 and projects profitability in 2015.
"We will use this new investment to improve our position as the high-street fashion authority in Southeast Asia," Michele Ferrario, managing director of the Zalora Group said in a statement. "We will grow our assortment and further enhance the portfolio of our private labels." Zalora launched its first private womenswear label, Ezra, this year.
The company has seen average month-on-month revenue growth of 15-20%, doubling every six months, Tito Costa, managing director for Zalora told AVCJ earlier this year.
It has invested in building its own delivery networks and warehouses in each country. "Our approach is to play the fragmentation in Southeast Asia, the different languages and cultures, to our advantage," Costa said. "We have decided to go for a localized structure in all of our ventures, from marketing to selection of merchandise."
The Iconic was founded in 2011 and has previously raised $26 million from Verlinvest, Investment AB Kinnevik and Summit Partners.
"This investment will allow us to continue to build the one-stop online shopping destination for fashion, footwear and beyond through a singular focus on customer satisfaction," said Patrick Schmidt, the company's CEO.
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