Mammoth £190m funding round for Farfetch
Farfetch has secured £190m in a mammoth funding round.
The London-based luxury technology platform has been backed by China’s Tencent and Dragoneer of Silicon Valley through the sale of convertible senior notes.
Each company will purchase $125m of the notes.
“I am pleased to have Tencent and Dragoneer as part of the Farfetch investor base,” said José Neves, Farfetch founder and CEO.
“Tencent’s deep technology expertise and ongoing relationship with Farfetch, paired with Dragoneer’s expertise in supporting growth-oriented technology companies, makes both investors outstanding partners to support Farfetch’s next chapter of growth.
“As we continue to execute on our long-term strategy, we believe that this investment supports Farfetch in delivering on the significant opportunity we see and scaling our business to achieve profitability in the medium term.”
Farfetch will use the capital to continue growing and expanding into new markets, particularly China, where Tencent runs the hugely popular WeChat messaging platform.
“We are excited to build on our cooperation with Farfetch and support the company as it accelerates its growth in China and enhances its customer experience and offerings in the region,” said Martin Lau, Tencent’s president.
“Tencent looks forward to supporting Farfetch’s mission to be a global technology platform for luxury fashion, and especially where we can support its efforts in China.”
Farfetch already has over 80 luxury brands on WeChat including Saint Laurent, Armani and Ralph Lauren.
“We are delighted to have the opportunity to invest in Farfetch at this stage in the company’s growth story,” said Marc Stad, founder and managing partner of Dragoneer.
“Under José’s leadership, Farfetch has established itself as the leading global technology platform for luxury fashion, capturing market share and delivering a unique service to its growing customer base and its community of brands and boutiques.
“We look forward to the company’s continued execution on its strategic vision to take the business to the next level.”