Alibaba seeks to invest in online fashion retailer Farfetch: report
Alibaba is in advanced talks to invest nearly $ 300 million (approximately Rs. 2.2 billion rupees) in online luxury fashion retailer Farfetch, the Information reported on Monday, citing people familiar with the matter.
Shares of London-based Farfetch rose about 16 percent to $ 32.59 (about Rs 2,400) on the news.
The two companies are also in talks to create a Chinese joint venture, the report said, adding that Richemont, the owner of Cartier, who has partnered with Alibaba To build mobile apps, it is also considering investing in Farfetch alongside the Chinese e-commerce giant.
Both Farfetch and Alibaba were not immediately available for comment.
Farfetch, which has Alibaba’s competitors JD Y Tencent Among its investors, it has bet on China’s burgeoning world of online luxury goods. Chinese consumers account for a third of luxury goods purchases worldwide.
The terms of the current and past deals with Tencent and JD would not prevent Alibaba from investing in Farfetch, Information said, citing a source.
At the beginning of last month, Alibaba said will invest $ 3.6 billion (approximately Rs 264.24 million) to increase its stake in hypermarket operator Sun Art, gaining ground in the Chinese retail market.
Alibaba hopes to further leverage its digital presence to support Sun Art’s 481 hypermarkets and three mid-size supermarkets in China. The move comes as the company constantly expands its presence in China’s offline retail sector, as the growth of traditional e-commerce slows. Alibaba is taking the stake of Auchan Retail International SA, the French multinational that launched two of the largest supermarket chains in China.
Alibaba, which already owned 21 percent of Sun Art through a unit, will increase its stake to around 72 percent by acquiring a similar stake in A-RT Retail Holdings, which owns 51 percent of Sun Art.