Global Fashion Group has agreed to acquire Kanui, a Brazilian e-tailer focused on the surf and skate lifestyle that also sells a wide range of apparel, footwear and equipment from bicycling, outdoor and fashion brands.
Kanui, which was founded in 2011, is growing rapidly and generated more than €30 million of net revenues in 2014, according to GFG. GFG also acquired Tricae, a kids and baby e-commerce company in Brazil founded in 2011. It generated more than €20 million of net revenues in 2014. The two businesses will be integrated into Dafiti, GFG’s market leader in Latin America.
GFG was founded in 2011 by Swedish Investment AB Kinnevik and German Rocket Internet SE to target the €630 billion fashion market in emerging markets where more than 2.5 billion consumers continue to rapidly shift their purchasing toward e-commerce. On Wednesday, the two companies announced they had invested an additional €150 million in GFG.
The financing round and the strategic acquisition value GFG in line with the most recent investment, and imply a post-money valuation of €3.1 billion. Kinnevik will own at least 25.0 percent and Rocket at least 21.9 percent of GFG after the financing round and the strategic acquisition.
“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,” said GFG CEO Romain Voog. “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.”
Oliver Samwer CEO and founder of Rocket Internet said, “We continue to be very excited about the prospects of international online fashion and GFG in particular. Romain and his team have made great progress in integrating the international businesses and the acquisitions of Kanui and Tricae will add further to GFG’s presence and ability to realize synergies.”
