Berlin-based startup incubator, Rocket Internet 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 USD 3.5 billion (€2.7 billion).
The new group will be called Global Fashion Group (GFG) and deal is expected to close by the end of 2014, 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%).
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The Board of Directors of GFG will include Lorenzo Grabau, CEO of Kinnevik as Chairman, Oliver Samwer, CEO of Rocket Internet as Deputy Chairman and representatives of the other largest shareholders and will continue to be led by their respective founders and management teams.
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.
According to the statement, as of 30 June 2014, GFG claims to have 4.6m active customers and over 7,000 employees. 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, according to the investors. In 2013, GFG’s IFRS revenues amounted to EUR 406m.
Rocket Internet and Kinnevik have also invested in PricePanda which launched in India recently. Earlier this year, Swedish investment firm, Kinnevik had invested USD 90 million in Quikr and USD 20 million in FoodPanda. FoodPanda also received funding from Phenom Ventures and Rocket Internet.