Farfetch Said Valued at Almost $1.5 Billion After Fundraising

  • Startup raises $110 million from Temasek, other investors
  • Online fashion company eyes initial public offering next

Farfetch is bucking the trend of declining valuations in startup land, after its latest funding round valued the online luxury fashion company at just under $1.5 billion, according to a person familiar with the matter.

The London-based startup, founded by former shoe designer Jose Neves, raised $110 million from investors including Temasek Holdings Pte, a Singapore sovereign wealth fund, and Chinese venture firm IDG Capital Partners, it said in a statement Wednesday. The $1.5 billion valuation, which includes investors’ latest contributions, is up from $1 billion last year and may be the last before an initial public offering in the medium term, the person said, asking not to be identified discussing a private matter. A Farfetch spokeswoman declined to comment beyond the statement.

News website The Business of Fashion reported Farfetch’s new valuation earlier.

The investment allows Farfetch to avoid, at least for now, the fate of companies like Jawbone Inc. and Foursquare Labs Inc., which raised money recently at valuations below their peak as investors become more hesitant about online business models. 

Farfetch partners with small boutiques to sell edgy, hard-to-find clothes and accessories at eye-popping prices, like a $2,190 embroidered silk top from Rosie Assoulin and $464 T-shirts by Bella Freud. It may reach profitability as soon as next year, allowing it to contemplate a public share listing that would probably be in New York, the person said.

The company plans to use the proceeds from the deal, in which France’s Eurazeo SA and existing investor Vitruvian Partners LLP also participated, to expand in the Asia-Pacific region. China currently represents about 12 percent of sales and is the second-largest market for Farfetch, which handled more than $500 million in transactions last year.

Qatalyst Partners LP advised Farfetch on the deal.

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