Farfetch has secured more than $1 billion investment in a global deal which will see it move into the Chinese market.
Chinese giant Alibaba and Swiss group Richemont have each invested $300m into the London fashion tech platform, while also investing $250m each in Farfetch China for a combined 25% stake in the new joint venture.
In addition, Alibaba and Richemont have an option to purchase a further combined 24% of Farfetch China after the third year of its formation.
Separately, Artemis has agreed to increase its existing investment in Farfetch with a $50m purchase of shares. Farfetch is listed on the New York Stock Exchange.
Farfetch will launch luxury shopping channels on Alibaba’s platforms, Tmall Luxury Pavilion and Luxury Soho, as well as Alibaba’s cross‐border marketplace Tmall Global.
The new channels expand the reach of Farfetch’s global luxury platform to Alibaba’s 757 million consumers.
Farfetch and Alibaba have also formed a steering group to further enhance what it is calling the Luxury New Retail initiative, which is aimed at leading the digitisation of the global luxury retail industry.
Richemont chairman Johann Rupert and Artemis chairman François‐Henri Pinault will join Farfetch and Alibaba on the LNR steering group as founding members.
“This announcement is a major step in our mission to connect the curators, creators and consumers of the luxury fashion industry,” said José Neves, Farfetch founder, chairman and CEO.
“The $1.15 billion investment in Farfetch from Alibaba Group, Richemont, and Artemis is a strong validation of our position as the global platform for luxury.
“The new initiatives with Alibaba Group and Richemont extend Farfetch’s strategy to power the digital transformation occurring across the luxury industry, which has been accelerated by the unprecedented challenges resulting from the COVID‐19 pandemic.
“The Luxury New Retail initiative will explore ways we can help the wider industry move forward and thrive in the post‐COVID world.”