Luxury online retailer Farfetch has announced it has raised almost $400 million through investment from one of China’s biggest e-commerce retailers JD.com.
As well as investing into the business financially, JD.com will be partnering with Farfetch to drive brand awareness and push expansion in the Chinese fashion marketplace.
Founder and CEO of Farfetch, José Neves, said: “China is the world’s second largest luxury market, and we are delighted to have such a respected partner, known for its strict protection of IP, with whom to address Chinese luxury consumers. This partnership addresses the market’s challenges by combining the Farfetch brand and curation with the scale and influence of the foremost Chinese e-commerce giant.”
Farfetch had raised just over $300 million from six different investors prior to the partnership with JD.com.
Chairman and CEO of JD.com, Richard Liu, said: “As part of our major luxury push, we could not have found a stronger online partner than Farfetch. We have always believed that the long-term trend of Chinese e-commerce is towards quality over price and this partnership with Farfetch further extends our lead in the battle for the future of China’s upwardly mobile consumers.”
Farfetch is not yet profitable, but is one of the few private companies in the UK to be valued at over £1 billion. JD.com reported revenue of £9.1 billion in the final quarter of 2016 and is listed on the Nasdaq stock exchange with a market capitalisation of £45.4 billion.