Global Fashion Group, the Europe-based, publicly-listed online fashion and lifestyle platform company, has raised approximately €120 million in gross proceeds by means of a placement of 16.5 million new shares at a price of €7.30 apiece.
The company, which operates brands like Dafiti, Lamoda, Zalora and The Iconic, says it will use the additional capital to "accelerate the execution of its mid-term strategy". It says it will invest heavily in the expansion of its 'Marketplace' and 'Fashion Services' businesses, in particular. From the press release:
GFG will grow investment in its technology and operations underlying both units so that fashion and lifestyle brands seeking to accelerate their ecommerce businesses globally will be able to plug seamlessly into GFG’s fashion services across data analytics, marketing and fulfilment.
With revenue of €1.16 billion, GFG operates across 4 continents and employs more than 10,000 people.
The company's co-CEO, Patrick Schmidt, commented: "Today, GFG operates in growth markets with some of the lowest fashion and e-commerce penetration worldwide. With over one billion consumers in these markets, our potential for growth is huge. With this transaction, we have even more firepower to accelerate fashion e-commerce adoption and to fuel the next chapter of our growth."
In connection with the offering, Global Fashion Group says it has agreed to a lock-up period of 180 days, subject to customary exemptions.