The Paris-based private equity fund, which has also invested in Vestiaire Collective, Moncler and Desigual, said its Eurazeo Croissance unit contributed 20 million euros, or $23 million at current exchange, as part of a capital increase.
This is part of a larger investment of 110 million euros, or $127 million, raised by a pool of international investors including IDG and Temasek, alongside the company’s existing shareholders.
According to the investment fund, the capital injection will be used to finance Farfetch’s development projects, particularly international growth and omnichannel retail. The company aims to consolidate its position in the Asia-Pacific region, which accounts for 26 percent of its revenues.
Founded in 2008 by José Neves, Farfetch is present in nearly 190 countries and brings together more than 400 independent boutiques. The Web site is available in nine languages and features more than 100,000 items and 1,000 brands. It generated a business volume of more than $500 million in 2015.
“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,” said Virginie Morgon, deputy chief executive officer of Eurazeo.
“In addition to its international profile, multichannel model and its perfect understanding of the rules governing the luxury goods industry, we were very impressed by the company’s ground-breaking business model and the quality of its implementation, particularly from a technological perspective,” she added.
Neves said: “I am delighted to have Eurazeo join as an investor. I was immediately impressed by the strengths of their team, both on the digital side and their knowledge of the luxury industry and generally by their amazing track record and world-class reputation and access. We believe Eurazeo is going to be a transformational partner for Farfetch.”