Tencent Holdings and Dragoneer to invest $250m in Farfetch
Farfetch has announced it has received a $250 million investment from Chinese internet giant Tencent Holdings and San Francisco-based investor Dragoneer, to fuel further growth and expansion.
Tencent committed to invest $125 million, while Dragoneer agreed to invest the remaining $125 million, the online fashion marketplace announced. The investment is in convertible senior notes issued by Farfetch, which can be later converted into stock, with the notes maturing in 2025.
Farfetch said in a statement: "The additional capital supports Farfetch's long-term strategy of delivering a global technology platform for the luxury fashion industry and facilitates the company's continued focus on executing its growth plans, including in the key China market, and driving towards operational profitability."
The London-based fashion ecommerce platform said its latest round of funding would be used to help the company with its global growth ambitions, specifically expanding its efforts in China as it looks to reach profitability.
Farfetch now serves customers in 190 countries, with items from more than 50 countries and over 1,200 brands, boutiques and department stores. Last November, Farfetch shares jumped 16% after the global online fashion marketplace posted a narrower-than-expected quarterly loss.