- Prachi Singh |
Global Fashion Group S.A. (GFG) has announced that the company has raised approximately 120 million euros in gross proceeds, via a placement of 16.5 million new shares at a price of 7.30 euros per share. The company said in a statement that GFG will use the additional capital to accelerate the execution of its mid-term strategy, particularly by investing in the expansion of its Marketplace and Fashion Services businesses.
Commenting on the development, Christoph Barchewitz, GFG’s Co-Chief Executive Officer, said: “This capital raise is a vote of confidence by our investors in our strategy and execution track record. We are proud to have accelerated growth in 2020 while also expecting to deliver our first EBITDA-positive year – one year ahead of our original guidance.”
GFG raises 120 million euros
The company added that both businesses are highly scalable and have significant scope for future growth. Marketplace has tripled its share of group NMV since 2017 to 34 percent in the third quarter of 2020. GFG will grow investment in its technology and operations underlying both units so that fashion and lifestyle brands seeking to accelerate their ecommerce businesses globally will be able to plug seamlessly into GFG’s fashion services across data analytics, marketing and fulfilment.
“Today, GFG operates in growth markets with some of the lowest fashion and e-commerce penetration worldwide. With over one billion consumers in these markets, our potential for growth is huge. With this transaction, we have even more firepower to accelerate fashion e-commerce adoption and to fuel the next chapter of our growth,” added the company’s Co-Chief Executive Officer, Patrick Schmidt.