Rocket Internet, a berlin-based startup incubator, has merged 5 emerging fashion brands into a single entity with its co-investor, Kinnevik, that include- Dafiti(Latin America), Jabong (India), Lamoda (Russia and CIS), Namshi (Middle East) and Zalora(South East Asia and Australia) at a combined valuation of $3.5 billion.
The deal is expected to close by the end of 2014 and the new group will be named Global Fashion Group (GFG) and , as per TechCrunch report. According to the Rocket Internet “substantially all” the direct and indirect shareholders in the five e-commerce companies will contribute their shares into the newly formed Luxembourg-based entity including three major shareholders in GFG will be Kinnevik (25.1%), Rocket (23.5%) and Access Industries (7.4%).
These five operations together have raised over EUR 1 billion in investment to date with shareholders including Kinnevik, Access Industries, Summit Partners, Verlinvest, Ontario Teachers’ Pension Plan and Tengelmann.
In 2013, GFG’s IFRS revenues amounted to EUR 406m. According to the investors, for the first six months of 2014, GFG websites had 353m unique visitors, received 8.4m orders and generated EUR 436m of Gross Merchandise Volume. GFG claims to have 4.6m active customers and over 7,000 employees.
Rocket Internet and Kinnevik have also invested in PricePanda which launched in India recently. Earlier this year, Swedish investment firm, Kinnevik had invested $ 90 million in Quikr and $ 20 million in FoodPanda. FoodPanda also received funding from Phenom Ventures and Rocket Internet.
Related Tags:Rocket Internet, South East Asia, indirect shareholders, e-commerce companies, Gross Merchandise Volume