Farfetch has raised 250 million dollars in investments from Tencent and Dragonner - a Chinese global technology pioneer in China and a San Francisco-based investment firm, respectively. Each is purchasing 125 million in convertible senior notes.
This financing supplements Farfetch’s current liquidity position, which amounted to approximately 320 million dollars as of December 31, 2019. The retailer said that it will use its capital to support growth in the Chinese market and for its long-term strategy towards "delivering a global technology platform for the luxury fashion industry."
“I am pleased to have Tencent and Dragoneer as part of the Farfetch investor base,” Farfetch founder, CEO and co-chair José Neves said in a statement. “Tencent’s deep technology expertise and ongoing relationship with Farfetch, paired with Dragoneer’s expertise in supporting growth-oriented technology companies, makes both investors outstanding partners to support Farfetch’s next chapter of growth.
“As we continue to execute on our long-term strategy, we believe that this investment supports Farfetch in delivering on the significant opportunity we see and scaling our business to achieve profitability in the medium term.”
Photo credit: Farfetch, Facebook