Farfetch has raised $110m barely a year after its last multimillion-dollar funding round that valued the London-based online luxury fashion retailer at $1bn.The company, which sells clothing for high-end boutiques, is one of the best backed technology start-ups in the capital, alongside TransferWise, the money transfer operator, and Shazam, the music discovery app.
The latest round of fundraising, led by new investors Temasek, IDG Capital Partners and Eurazeo, is one of the biggest by a UK technology start-up in the past year. It is aimed at giving Farfetch the financial firepower to expand in the Asia-Pacific region, which accounts for 26 per cent of its sales.
China has become the company’s second-largest market two years after it launched there, accounting for 12 per cent of sales, and it is seen as key to future growth.The additional funds bring the total Farfetch has raised to more than $305m in almost six years. The company is one of the few UK-based digital start-ups
to have a private valuation in excess of $1bn.
Farfetch has grown rapidly since its launch in 2008 by enabling luxury brands and independent shops to sell their clothing globally while improving the efficiency of their back office operations through clever data use.Its client list includes many leading labels but many of the 400 boutiques and more than 1,600 luxury designers that pay for the company’s services are small independent traders.
Farfetch gained a physical presence last May when it bought Browns, the London-based boutique that acts as a test bed and showcase for the company’s technology.José Neves, Farfetch’s founder and chief executive, said the fundraising was buoyed by “strong inbound interest” from the latest group of backers, which include existing investor Vitruvian Partners.
Virginie Morgan, deputy chief executive of Eurazeo, said: “We were enticed by the Farfetch model, which covers the sectors in which we have already gained a solid foothold, digital technology, luxury goods and brand names.”
, online luxury fashion
, music discovery app
, IDG Capital Partners