Farfetch Limited (NYSE: FTCH), a global technology platform for the luxury fashion industry, today announced that it has agreed to issue and sell, through a private placement, convertible senior notes in an aggregate principal amount of $250 million. Tencent, a global technology platform based in China, has notably committed to a strategic investment by agreeing to purchase $125 million of the notes, and San Francisco-based investment firm Dragoneer has agreed to purchase the remaining $125 million of notes.
Founded in 2008, Farfetch claims it operates a modular end-to-end technology platform purpose-built to connect the luxury fashion ecosystem worldwide. The company further explained:
“Our vision was to create a single operating system to address the complex demands of consumers and luxury sellers alike. Our platform is built on an API-enabled proprietary technology stack, which provides the foundation for the three main components: applications, services and data.”
Speaking about the private placement, José Neves, Farfetch Founder, CEO and Co-Chair, stated:
“I am pleased to have Tencent and Dragoneer as part of the Farfetch investor base. Tencent’s deep technology expertise and ongoing relationship with Farfetch, paired with Dragoneer’s expertise in supporting growth-oriented technology companies, makes both investors outstanding partners to support Farfetch’s next chapter of growth. As we continue to execute on our long-term strategy, we believe that this investment supports Farfetch in delivering on the significant opportunity we see and scaling our business to achieve profitability in the medium term.”
Martin Lau, President of Tencent, added:
“We are excited to build on our cooperation with Farfetch and support the Company as it accelerates its growth in China and enhances its customer experience and offerings in the region. Tencent looks forward to supporting Farfetch’s mission to be a global technology platform for luxury fashion, and especially where we can support its efforts in China.”