Five emerging fashion brands have been merged at a combined valuation of $3.5 billion by a berlin-based startup incubator, Rocket Internet, 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).
As per a report by TechCrunch, the deal is expected to close by the end of 2014 and the new group formed will be named Global Fashion Group (GFG). As declared by the Rocket Internet, considerably 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%).
Over EUR 1 billion in investment has been raised by these five operations together to date , with shareholders including Kinnevik, Access Industries, Summit Partners, Verlinvest, Ontario Teachers’ Pension Plan and Tengelmann.
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This is not the first investment by Rocket Internet and Kinnevik in any Indian company; they have also invested in PricePanda which was launched recently. Kinnevik, which is a Swedish investment firm, invested $ 90 million in Quikr and $ 20 million in FoodPanda, earlier this year. FoodPanda also received funding from Phenom Ventures and Rocket Internet.
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