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.