Financial and antitrust regulators have approved the creation of the Global Fashion Group (GFG), an international group of five Internet retailers: Russian Lamoda, Latin American Dafiti, Indian Jabong, Middle Eastern Namshi and Asian-Australian Zalora.
The creation of the GFG was announced in early September. The new legal entity will be registered in Luxembourg, the main shareholders of the merged company are Kinnevik (25,1% - with the prospect of increasing its stake to 26,1%), Rocket Internet (23,5%) and Access Industries of an American entrepreneur with Russian roots Leonard Blavatnik (7,4%).
GFG's focus will remain on mobile commerce
The capitalization of the combined company is 2,7 billion euros. On June 30, the number of active GFG users was 4,6 million. In the first half of 2014, the number of visitors to GFG sites was 353 million users; they placed 8,4 million orders; total sales for the reporting period amounted to 436 million euros (Gross Merchandise Volume). In 2013, GFG revenue was 406 million euros.
Since the launch in 2011 and 2012, five Internet sites have attracted 1 billion investments from Kinnevik, Access Industries, Summit Partners, Verlinvest, Tengelmann and others. At 30 on June, the amount of funds in GFG accounts is 350 million euros.
GFG will focus on emerging markets. The company will operate in 23 countries with a combined population of 2,5 billion people and a fashion market of 330 billion euros. The main focus of GFG will remain mobile commerce - the group will develop online applications amid growing numbers of smartphone users in developing countries.