World Bank Group’s IFC invests €15 million in Latin America’s Dafiti
Equity Investment Affirms Leading Online Fashion Retailer’s Commitment to Sustainable and Long-Term Growth in Brazil and Region
28 JANUARY 2014
SummarySão Paulo, January 28, 2014 – The Dafiti Group, Latin America’s leading fashion e-commerce, today announced an equity investment of €15 million from The International Finance Corporation (IFC), a member of the World Bank Group and the largest global private sector development institution. In three years, the Dafiti Group was able to attract USD 275 million in funding from investors, including anchor investor, Investment AB Kinnevik, as well as JP Morgan, Quadrant Capital Advisors and Teachers' (OTPP).
São Paulo, January 28, 2014 – The Dafiti Group, Latin America’s leading fashion e-commerce, today announced an equity investment of €15 million from The International Finance Corporation (IFC), a member of the World Bank Group and the largest global private sector development institution. In three years, the Dafiti Group was able to attract USD 275 million in funding from investors, including anchor investor, Investment AB Kinnevik, as well as JP Morgan, Quadrant Capital Advisors and Teachers' (OTPP).
IFC’s investment will support Dafiti’s expansion and enable the company to consolidate its sustainable growth whilst raising environmental, social, and corporate governance standards and strengthening competitiveness through reduced operating costs and enhanced efficiency.
“We are proud of achieving high-level and rigorous standards that have enabled Dafiti to receive this impressive sum funding. It endorses Dafiti’s long-term commitment to Brazil, Argentina, Chile, Colombia, and Mexico and also reflects our solid and sustainable operations in each of these countries” said Dafiti co-founder Philipp Povel.
Dafiti employs more than 1,500 people in Brazil alone and supports jobs indirectly in logistics, information technology and by facilitating demand for locally sourced goods. The business will continue adding jobs and expanding choices for consumer goods in developing countries.
“Internet companies are speeding up modernization of the retail supply chain in developing countries, which promotes consumer spending—a key component of economic growth,” said Atul Mehta, IFC's Director of Manufacturing, Agribusiness and Services. “Their investment in logistics, information technology and marketing are rapidly generating employment, especially for women and young people.”
Since 2011, Dafiti has spurred the growth of online retail in Brazil and has influenced online consumption, especially in the ‘apparel’ category, which in 2013 for the first time became Brazil’s leading e-commerce category. According to e-bit, a specialized consultancy company, Brazil’s e-commerce is expected to grow by 25% in 2014, reaching R$28.5 billion in revenue.
Besides supporting Dafiti’s expansion, IFC will also invest up to €10 million in Lamoda, Russia’s leading online retailer that also operates in Kazakhstan. 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.
About Dafiti Group
- Operations in 5 countries: Brazil, Argentina, Chile, Colombia, and Mexico
- More than 2,000 brands, 125,000 products
- More than 900 brands and 100,000 products in six categories in Brazil: apparel, shoes, accessories, beauty, home and décor.
- 1,500 employees in Brazil
- For more information, please visit Dafiti in Brazil: www.dafiti.com.br or in Latin America: www.dafiti.com.ar, www.dafiti.cl, www.dafiti.com.co, www.dafiti.com.mx.
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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About Rocket Internet
About Rocket Internet
Rocket Internet incubates and invests in internet and technology companies globally. 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 33,000 employees. Rocket Internet SE is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET). For further information please visit www.rocket-internet.com.