The Global Fashion Group (GFG), managed by German startup machine Rocket Internet, announced today that it has raised US$339 million in a fresh round of funding which values the group of ecommerce sites at US$1.1 billion.
GFG is made up of six stores selling clothing and accessories: Jabong in India, Zalora in Southeast Asia, Namshi in the Middle East, The Iconic in Australia and New Zealand, Dafiti in Latin America, and Lamoda in Russia and Eastern Europe. Rocket Internet has committed to underwrite at least US$113 million of the investment, with the rest coming from existing shareholders.
Rocket Internet’s latest annual report suggested both Zalora and Jabong were running out of money. Zalora’s losses from 2013 to 2015 amounted to US$259 million, suggesting that it may have burned through the entirety of its cash reserves.
This fresh cash injection will surely breathe new life into the struggling companies and help them fend off competition from the likes of Myntra in India and Reebonz in Southeast Asia.
(Source: Tech In Asia)