Global Fashion Group, which houses six international fashion e-tailers including India’s Jabong, today announced that it has raised an additional $33 million topping up its April round this year when it raised $330.9 million at a sharp valuation drop of 68% at $1.1 billion. Existing investors, Kinnevik, Rocket Internet, and Rocket Internet Capital Partners have participated in this round, the company said in a statement.
The development comes at a time when various reports indicate that GFG is talking to suitors to sell off Jabong. It has reportedly held talks with multiple online and offline retailers including Aditya Birla Group, Flipkart, Snapdeal, Future Group among others. Amidst the Jabong sale reports, CEO Sanjeev Mohanty is also believed to be on his way out to join Levi’s as its managing director.
According to Kinnevik it has infused $177.7 million in the round and holds 35% stake while while Rocket Internet has pumped in $75 million with little over 20% stake in GFG.
“The recent funding round provides GFG with the necessary capital to continue on that path. We are looking forward to continuing to work with the GFG team as well as Kinnevik and the other GFG shareholders,” CEO of Rocket Internet, Oliver Samwer, said in a statement.
Started in 2014, GFG has five regional online fashion businesses apart from Jabong– Dafiti in Latin America, Lamoda in Russia and CIS, Namshi in the Middle East, The Iconic in Australia and Zalora in South-East Asia. Berlin-based Rocket Internet, known for copying successful internet models, has been struggling with many of its startups being unprofitable. In April, the German internet group, slashed the estimated value of of GFG from about 3 billion to approximately 1 billion.