World Bank Group’s IFC invests €10 million into Lamoda
Equity Investment Affirms to Leading Online Fashion Retailer’s Commitment to Sustainable and Long-Term Growth in Russia and CIS
28 JANUARY 2014
SummaryMoscow, January 28, 2014 – Lamoda, Russia’s leading online fashion retailer, today announces an equity investment of €10 million from IFC, a member of the World Bank Group and largest global development institution.
Moscow, January 28, 2014 – Lamoda, Russia’s leading online fashion retailer, today announces an equity investment of €10 million from IFC, a member of the World Bank Group and largest global development institution.
It’s the first investment of the IFC into Lamoda and will support the company’s expansion as well as enable Lamoda to consolidate its sustainable growth whilst further raising environmental, social, and corporate governance standards. It will also aid the regional development of the company's express delivery network, Lamoda Express.
Lamoda employs more than 2,000 people in Russia, Kazakhstan and indirectly supports the job creation in logistics and information technology sectors. The company is constantly adding jobs and expanding choices for consumer goods in Russia and the Commonwealth of Independent States (CIS).
“Internet companies are speeding up modernization of the retail supply chain in developing countries, which is helping to promote consumer spending — a key component of economic growth,” said Atul Mehta, IFC's Director of Manufacturing, Agribusiness and Services. “Their investments in logistics, information technology and marketing are rapidly generating employment, especially for women and young people.”
”We are proud to welcome such a renowned institution like the IFC as one of our investors. It reconfirms our high operational standards and sustainable growth path as the leading online fashion retailer in the CIS region,” added Nils Chrestin, CFO of Lamoda.
Besides supporting Lamoda’s expansion, IFC will also invest up to €15 million in Dafiti, Latin America’s leading fashion e-commerce group. IFC supports investments in the retail sector in developing countries because of its economic importance in terms of employment, consumer spending, and tax revenues. In fiscal year 2013, IFC allocated more than US$600 million of long term and short term financing to the retail sector.
Lamoda is the leading online retailer in Russia and CIS, offering more than 1,000,000 products and 900 international brands. With Lamoda Express, it operates its own express delivery network supporting next day delivery to currently more than twenty-five cities throughout Russia and Kazakhstan.
Positioned as a leader in customer experience, Lamoda offers free shipping and a try-on service, as well as 365 day period for returns free of charge. Lamoda was launched in 2011 by its four founders Dominik Picker, Florian Jansen, Burkhard Binder and Niels Tonsen.
Among Lamoda’s existing investors are Investment AB Kinnevik, Access Industries, JP Morgan, Summit Partners and Tengelmann.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. IFC works with private enterprises in more than 100 countries, expending capital, expertise, and influencing towards the elimination of extreme poverty and promotion of shared prosperity. In FY13, the company’s investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, please visit www.ifc.org.
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Our Mission: To Become the World's Largest Internet Platform Outside the US and China
We intend to create an Internet giant where none exists today. We strive to own the mobile homescreen with a view to maximizing our share of consumer online spending in our fast-growing markets. We identify and build proven Internet business models and transfer them to new, underserved or untapped markets, mainly outside the United States and China, where we seek to scale them into market leading online companies. Started in 2007 Rocket Internet today employs more than 20,000 people across our network of companies, which operates in more than 100 countries on 5 continents.
We build online business models that satisfy basic consumer needs mainly across three focus sectors. Our e-commerce companies include retail companies in the areas of fashion, general merchandise, home and living, office supplies and food and groceries. Our marketplace companies seek to displace traditional supply chains by creating venues where buyers and sellers can transact directly, and include real estate and car online classifieds, travel and transport, and food delivery companies. Our third sector, financial technology, includes companies that focus on bringing together borrowers and lenders in regions and segments that are underserved by traditional banks, particularly in the consumer and small and medium-sized enterprise segments, and on facilitating payments.
As part of our global strategy, we have created regional Internet groups in Africa, Asia Pacific, Latin America and the Middle East in order to bundle local market and business model insights, facilitate regional commercial, strategic and investment partnerships, in particular with mobile telecommunication providers, enable local recruiting and sourcing and accelerate the regional rollout of our companies. We have developed proprietary technology where we believe it provides our companies with a competitive advantage. Our proprietary technology is highly flexible and scalable and provides our companies with significant cost and speed advantages, particularly during their initial rapid launch and rollout processes.
Our platform has enabled us to build a large, global network of companies and has historically put us in a position to launch more than 10 new companies every year through application of a standardized business model identification and development process. Every new company that we start accelerates the virtuous circle of synergy creation among our companies. The larger the size of our network of companies, the more significant our opportunity is to benefit from synergies and network effects with respect to our suppliers, solution providers, customers and employees.