its shareholding in two Brazilian e-commerce businesses
Summary
Rocket Internet SE today announced that it is participating in a EUR 150 million internal financing round in Global Fashion Group (“GFG”). Furthermore, Rocket Internet agreed to contribute the two Brazilian online fashion businesses Kanui and Tricae from its Latin America Internet Group in a share for share transaction to realize further synergies.
Rocket Internet SE (“Rocket Internet”) today announced that it is participating in a EUR 150 million internal financing round in Global Fashion Group (“GFG”). Rocket Internet will invest its pro rata share of the financing round amounting to EUR 37 million and has undertaken to guarantee an additional part of the financing round amounting to a maximum commitment of EUR 49 million. Rocket Internet has furthermore agreed to contribute the two Brazilian online fashion businesses Kanui and Tricae from its Latin America Internet Group in a share for share transaction to realize further synergies.
The financing round provides GFG with additional capital to solidify its position as the leading emerging markets fashion e-commerce company. The proceeds will mainly be invested to strengthen GFG’s fulfilment, marketing and product development as well as to build the infrastructure to capitalize on the synergies between GFG’s market-leading online fashion businesses in Latin America, Middle East, Russia & CIS, India, South East Asia and Australia.
Kanui is a sports and outdoor e-commerce business in Brazil founded in 2011 mainly focusing on the attractive surf and skate lifestyle verticals, but also on regular fashion apparel as well as various sports equipment. Kanui is growing rapidly and generated more than EUR 30 million of net revenues in 2014. Tricae is a kids and baby e-commerce company in Brazil founded in 2011. It generated more than EUR 20 million of net revenues in 2014. The two businesses will be integrated into Dafiti, GFG’s market leader in Latin America.
The financing round and the strategic acquisition value GFG in line with the most recent investment, and imply a post-money valuation of EUR 3.1 billion. Rocket Internet will hold at least 24.2%1 of after the financing round and the strategic acquisition.
Romain Voog, CEO of GFG, commented: “The additional capital will give us an exceptionally strong run-way and allow us to capitalize on the massive growth opportunity of fashion e-commerce in emerging markets. In addition, the strategic acquisitions of Kanui and Tricae enable the integration of two great businesses that have a natural fit with our Latin American brand Dafiti and are acquired at attractive terms.”
Oliver Samwer, CEO and Founder of Rocket Internet said: “We continue to be very excited about the prospects of international online fashion and GFG in particular. Romain and his team have made great progress in integrating the international businesses and the acquisitions of Kanui and Tricae will add further to GFG’s presence and ability to realize synergies.”
1 Rocket Internet will at a minimum hold 21.9% directly and 2.3% indirectly through Latin America Internet Group.
