Rocket Internet participates in financing round of Global Fashion Group and agrees to contribute its shareholding in two Brazilian e-commerce businesses
01 JULY 2015, BERLIN
SummaryRocket Internet SE today announced that it is participating in a EUR 150 million internal financing round in Global Fashion Group (“GFG”). Furthermore, Rocket Internet agreed to contribute the two Brazilian online fashion businesses Kanui and Tricae from its Latin America Internet Group in a share for share transaction to realize further synergies.
Rocket Internet SE (“Rocket Internet”) today announced that it is participating in a EUR 150 million internal financing round in Global Fashion Group (“GFG”). Rocket Internet will invest its pro rata share of the financing round amounting to EUR 37 million and has undertaken to guarantee an additional part of the financing round amounting to a maximum commitment of EUR 49 million. Rocket Internet has furthermore agreed to contribute the two Brazilian online fashion businesses Kanui and Tricae from its Latin America Internet Group in a share for share transaction to realize further synergies.
The financing round provides GFG with additional capital to solidify its position as the leading emerging markets fashion e-commerce company. The proceeds will mainly be invested to strengthen GFG’s fulfilment, marketing and product development as well as to build the infrastructure to capitalize on the synergies between GFG’s market-leading online fashion businesses in Latin America, Middle East, Russia & CIS, India, South East Asia and Australia.
Kanui is a sports and outdoor e-commerce business in Brazil founded in 2011 mainly focusing on the attractive surf and skate lifestyle verticals, but also on regular fashion apparel as well as various sports equipment. Kanui is growing rapidly and generated more than EUR 30 million of net revenues in 2014. Tricae is a kids and baby e-commerce company in Brazil founded in 2011. It generated more than EUR 20 million of net revenues in 2014. The two businesses will be integrated into Dafiti, GFG’s market leader in Latin America.
The financing round and the strategic acquisition value GFG in line with the most recent investment, and imply a post-money valuation of EUR 3.1 billion. Rocket Internet will hold at least 24.2%¹ of after the financing round and the strategic acquisition.
Romain Voog, CEO of GFG, commented: “The additional capital will give us an exceptionally strong run-way and allow us to capitalize on the massive growth opportunity of fashion e-commerce in emerging markets. In addition, the strategic acquisitions of Kanui and Tricae enable the integration of two great businesses that have a natural fit with our Latin American brand Dafiti and are acquired at attractive terms.”
Oliver Samwer, CEO and Founder of Rocket Internet said: “We continue to be very excited about the prospects of international online fashion and GFG in particular. Romain and his team have made great progress in integrating the international businesses and the acquisitions of Kanui and Tricae will add further to GFG’s presence and ability to realize synergies.”
¹ Rocket Internet will at a minimum hold 21.9% directly and 2.3% indirectly through Latin America Internet Group
Andreas Winiarski, Senior Vice President Global Communications
T: 49 30 300 13 18 68
Global Fashion Group (GFG) operates across four continents and 27 countries, employing over 9,500 people. With a focus on emerging markets, GFG targets a EUR 630bn fashion market and over 2.5bn people who rapidly continue to move online and purchase via e- commerce. GFG offers a wide assortment of leading international and local fashion brands, as well as a selection of internal brands. GFG invests consistently in delivering the best customer experience, including last mile delivery networks where necessary. Global Fashion Group was founded in 2011 by Swedish Investment AB Kinnevik and German Rocket Internet SE. For further information visit www.global-fashion-group.com.
About Rocket Internet
Rocket's mission is to become the world's largest Internet platform outside of the United States and China. Rocket identifies and builds proven Internet business models and transfers them to new, underserved or untapped markets where it seeks to scale them into market leading online companies. Rocket is focused on online business models that satisfy basic consumer needs across four main sectors: eCommerce, marketplaces, travel and financial technology. Rocket started in 2007 and has now more than 30,000 employees across its network of companies, which are active in more than 110 countries across six continents. Rocket Internet SE is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET). For further information visit www.rocket-internet.com.
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About Rocket Internet
About Rocket Internet
Rocket Internet incubates and invests in Internet companies with proven business models. It provides operational support to its companies and helps them scale internationally. Rocket Internet focuses predominantly on four industry sectors of online and mobile retail and services that make up a significant share of consumer spending: Food & Groceries, Fashion, General Merchandise and Home & Living. Rocket Internet’s selected companies are active in a large number of countries around the world with more than 28,000 employees. Rocket Internet SE is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET). For further information please visit www.rocket-internet.com.