Cart 0

Farfetch raises $110million

Affiliate Cart Software China Fashion Market Department Stores ecommerce Farfetch Fundraising Net-A-Porter retail Venture Capital Yoox

Our first reaction to Farfetch raising another $110million taking its total funding to $300million was - WHAAAAAT?

The company is a retailer without stock and operate as an advanced affiliate network connecting buyers with stores & brands. It earns about 25-30% in commissions on the sales they generate which is much higher than standard affiliate schemes, where anything up to 10% is considered good, and would resemble more of a department store with concession shop-in-shops where up to 40% commission on sales is not unheard of.

However, Racked (link below) reports that much of the $110million will be used to develop the company's ecommerce software targeting brands in a similar way to Net-A-Porter|Yoox are doing. This could make sense. A lot.

http://www.racked.com/2016/5/4/11590092/farfetch-funding

Additional note: FT.com reports that 12% of the company's revenues come from China and that money raised will be used to expand the company's Asian operations.

Link to original FT.com article published May 4, 2016


Older Post Newer Post


Leave a comment

Please note, comments must be approved before they are published