Global Fashion Group, or GFG, has raised around €120 million for expansion through a share placement.
Notably, 16.5 million new shares have been placed at a price of €7.30 for every share.
The renowned international e-tailer, which owns Zalora, The Iconic, Dafiti and Lamoda websites, reportedly, has said that the additional capital will be used to expand its marketplace.
Besides, GFG has also made it distinct that it will use the capital to invest substantially in its fashion business as well as technology and operations.
Talking about the marketplace, the e-tailer also said that its marketplace had trebled its share of group net merchandise value since 2017 to 34 per cent in the Q3 of 2020.
While stating that the additional capital raised shows the confidence investors have in GFG’s strategy, Christoph Barchewitz, Co-CEO, GFG, said the company takes pride in having had an accelerated growth this year and expects to deliver its maiden EBITDA-positive year.
And if that happens, then GFG would be a year ahead of its original guidance.
The company believes that there couldn’t have been a better time than now to further invest in bettering technology and enhancing operational infrastructure – especially with a record share of net merchandise value coming from its marketplace.
With revenue of €1.16 billion, GFG operates across 4 continents and employs more than 10,000 people.
