Friday, 31 January 2020

Farfetch gets $250m investment to accelerate China growth

luxury platform Farfetch has raised $250 million from Tencent, the Chinese technology pioneer, and San Francisco-based investment firm Dragoneer to support its growth plans in China.

Tencent and Dragoneer are each investing $125 million in convertible senior notes issued by Farfetch.

The London-based fashion company said the deal supports its long-term strategy of delivering a global technology platform for the luxury fashion industry. It also expands the retailer’s partnership with Tencent as it sharpens its focus on the Chinese market. 

It currently offers more than 80 luxury brands on Tencent’s WeChat, including Moncler, Balenciaga, Saint Laurent, Armani, and Ralph Lauren. 

The new investment underlines the importance of the Chinese market. It may be struggling to a certain extent at the moment given the disruption in Hong Kong and the tragic coronavirus outbreak, but in the long term, it remains on course to be the largest luxury market globally.

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