- Prachi Singh |
The London-based online retailer Farfetch is looking at floating its New-York based initial public offering (IPO) at a valuation of 5 billion dollars, reports CNBC, citing sources familiar with the development. Farfetch, founded in London in 2008 by Portuguese entrepreneur José Neves, has offices in 11 cities, including London, Tokyo and Los Angeles. Neves had told Reuters in 2016 that the “next financial milestone” for the company would be to float an IPO.
Running a marketplace model, Farfetch offers over 700 brands including luxury labels such as Gucci and emerging ones like Gabriela Hearst and caters to its customers in more than 190 countries worldwide. In 2016, according to the accounts filed with the UK regulators, the company’s turnover of 151 million pounds (209.9 million dollars under current exchange) jumped 74 percent, while gross merchandise value reached 547 million pounds (760.3 million dollars). However the company posted losses of 34 million pounds (47.3 million dollars) during the year under review.
Farfetch has inked several partnership deals such as with JD.com in Asia and The Chalhoub Group in the Middle East as well as with Conde Nast. In 2015, the company also acquired London fashion boutique Browns, which it calls the ‘Store of the Future’ offering touch-screen-enhanced mirrors and connected clothing racks. Farfetch has also launched Black and White, an infrastructure platform for luxury labels to develop their own e-commerce business.