Farfetch secures $110M in funding to drive growth in Asia Pacific

Image courtesy of Farfetch

Online retailer Farfetch is raising competition in the luxury ecommerce space with the close of a series F round.

An additional $110 million in capital was raised in the round, which was led by players including Temasek, IDG Capital Partners and Eurazeo, bringing the total amount the company has raised to more than $305 million, per Business of Fashion. The fashion ecommerce startup space has seen a lot of interest from investors, as newcomers change the way luxury does business.

Fruitful funding
This investment round will help Farfetch bolster its technology and will also aid growth in the Asia Pacific region, particularly China. Investors Temasek, which is owned by Singapore’s government, and IDG Capital Partners, based in China, have intimate knowledge of the area.

China is of special interest, as it accounts for 12 percent of the retailer’s sales.

France’s Eurazeo in particular is a beneficial partner to have in the luxury space, as the investor also owns stakes in players such as Moncler and Vestiaire Collective.

Existing investor Vitruvian Partners also participated in the round.

At the previous round E, Farfetch was valued at $1 billion, as it gained $58 million in capital.

Farfetch founder/CEO José Neves said that the next step for the company would be an initial public offering, although he does not know when that will happen.

Farfetch ecommerce site

Fashion ecommerce platform Farfetch has reached its goal of 400 boutiques, and with that achievement comes expanded inventory.

With its expanded retail network of physical shops aggregated online, Farfetch is now planning to offer its consumers beauty and personal care items as well as children’s apparel and accessories. Farfetch’s approach to high-end retail is revolutionary, and as it expands into categories outside of fashion, its comparison as the “Amazon.com of luxury” is sure to continue (see story).

Farfetch has been prioritizing omnichannel retail, as it seeks to further connect the online and offline shopping experience through its physical partner boutiques.

Over the holidays, the fashion ecommerce platform made shopping accessible 24/7 with shoppable window displays at more than 100 of its boutiques around the world.

Leveraging QR codes, the displays allowed passersby to purchase the items seen in the window regardless of whether the shop was open. This effort was poised to reach local consumers who may not usually have been accustomed to shopping these boutiques online, sending them to a new channel to buy (see story).

Fashion startups are seeing heavy interest from investors in financing rounds, with The RealReal, Vestiaire Collective and Lyst all gaining capital from major players within the past year.

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