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Kinnevik leads financing round in Global Fashion Group and agrees to contribute its shareholding in two Brazilian e-commerce businesses

1 July 2015, 8:31 AM

Investment AB Kinnevik (publ) ("Kinnevik") today announced that it is leading a EUR 150m internal financing round in Global Fashion Group ("GFG"). Kinnevik will invest its pro rata share of the financing round amounting to EUR 41 million and has undertaken to guarantee an additional part of the financing round jointly amounting to a total maximum commitment of EUR 65 million. Separately, Kinnevik has agreed to contribute its entire shareholding in the two Brazilian online fashion businesses Kanui and Tricae to GFG in a share for share transaction.

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 30m of net revenues in 2014. Tricae is a kids and baby e-commerce company in Brazil founded in 2011. It generated more than EUR 20m 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. Kinnevik will own at least 25.0% and Rocket at least 21.9% of GFG 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."

Lorenzo Grabau, Chairman of GFG and CEO of Kinnevik, commented: "We are very pleased with the progress that the management team of Global Fashion Group has made in terms of capturing the substantial growth opportunities in its 27 markets. As Global Fashion Group's largest shareholder, we are proud to be leading the financing round to ensure its continued success as the leading emerging markets fashion e-commerce company."

The information is of such character, which Investment AB Kinnevik (publ) shall disclose in accordance with the Securities Market Act (2007:528) and/or the law on Trading with Financial Instruments (1991:980). The information was submitted for publication on 1 July, 2015 at 08.30 (CET).

For further information, or contact:

Torun Litzén, Director Investor Relations +46 (0)8 562 000 83
  +46 (0)70 762 00 83

Kinnevik is an entrepreneurial investment group focused on building digital consumer businesses in four sectors: Communication, E-commerce & Marketplaces, Entertainment, and Financial Services. We work in partnership with talented founders and managers to create, invest in and lead fast growing digital businesses both in developed and developing countries. Kinnevik was founded in 1936 by the Stenbeck, Klingspor and von Horn families.

Kinnevik's shares are listed on Nasdaq Stockholm's list for large cap companies under the ticker codes KINV A and KINV B.

Press release

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Source: Kinnevik via Globenewswire