Farfetch. Unicorn with Portuguese DNA raises US $ 250 million in investment
30 January 2020
Farfetch. Unicorn with Portuguese DNA raises US $ 250 million in investment

Farfetch, the luxury clothing startup founded by José Neves that is valued at more than one billion dollars, raised 250 million investment from Tencent and Dragoneer.

Farfetch, the first startup with Portuguese DNA to become a unicorn (a company with a valuation of more than one billion dollars), raised an additional 250 million dollars (about 226.7 million euros) of investment. The Chinese technological group Tencent and the North American investment fund Dragonner are both responsible for the bet on the company, having each entered with 125 million dollars.

"I am pleased to have Tencent and Dragoneer as part of Farfetch's investor base. Tencent's deep technology experience and ongoing relationship with Farfetch, combined with Dragoneer's experience in supporting growth-oriented technology companies, make the two investors excellent partners to support Farfetch's next growth chapter”, says José Neves.

The amount raised will reinforce the company's net position, which, at the end of December 2019, had approximately US $ 320 million (around 290 million euros) in cash. In a statement, the startup led by Portuguese José Neves says that it will work more closely with these investors and that this value will "elevate” the relationship that already exists between the companies.

The amount was raised through debt bonds issued by Farfetch with an interest rate of 5% per year that will be paid quarterly every year until 2025.

Founded in 2007 and based in London, Farfetch is the leading global technology platform for the luxury fashion industry. According to the Chinese investor, Farfetch is already helping "luxury brands in the west to reach Chinese consumers through WeChat [competitor of WhatsApp], owned by Tencent”.

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