JD.com-backed Farfetch to go public in US
UK-based luxury online fashion retailer Farfetch, which has received significant funding from Asian investors including China’s JD.com, has filed for a US IPO.
According to a prospectus, the offering will consist of both newly issued shares and a secondary share offering. The number of shares and pricing have not been disclosed, though the company is reportedly planning on a valuation of up to $6 billion. Farfetch is also considering a concurrent private placement with JD.com, intended to help JD.com maintain its current stake in the company following the IPO.
The offering is largely aimed at increasing visibility of the company. Farfetch plans to use the proceeds of the IPO for working capital and to fund acquisitions and other growth opportunities, but does not currently have specific plans for such expenditures.
Farfetch operates an end-to-end technology platform intended to assist luxury fashion operators worldwide. It operates several applications including Farfetch Marketplace, which connects consumers from 190 countries with luxury goods sellers from 45 countries; Farfetch Black & White Solutions, which provides tools to help retailers and brands build their own e-commerce platforms; and Farfetch Store of the Future, which focuses on innovative technology for offline retail stores.
Farfetch Marketplace currently accounts for 90% of the company’s revenue. As of December 2017, Farfetch had over 935,000 active consumers on the platform, shopping from 980 sellers. For the 2018 spring and summer season, the company had 5.7 million stock units available from more than 3,200 brands.
For the year ended December 2017, the company’s revenue came to $386 million, up from $242 million the year before. Over the same period the company’s net loss grew from $81 million to $112 million.
Customers from the Asia Pacific region accounted for over a third of Farfetch’s total revenue last year, and JD.com’s $397 million investment last year – along with a $110 million round led by Temasek Holdings, IDG Capital Partners, and Eurazeo in 2016 – was intended to help it capitalize on these consumers. The company has not disclosed detailed shareholding figures, but JD.com currently holds a stake of more than 5%, as do Advent Partners and DST Global.
More on Europe
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.