Berlin based incubator Rocket Internet along with co-investor Kinnevick announced that it would merge five of its fashion brands, established in emerging markets, into a single entity that will have a combined worth of $3.5 billion.
The five companies that would come under the umbrella group called Global Fashion Group (GFG) are Dafiti (Latin America), Jabong (India), Lamoda (Russia and CIS), Namshi (Middle East) and Zalora (South East Asia and Australia).
Rocket Internet has been operating out of Europe for the past 7 years and has been significantly focusing on the developing markets that are not saturated by users and competition and has consumers who have recently adopted online markets, therefore aiming at a huge opportunity for fast growth. GFG, Rocket says, will collectively cover 23 countries and 2.5 billion people, with an estimated fashion market value of €330 million.
The GFG companies will continue to be led by their respective founders and management teams with a few select additions to the leadership team intended to foster group synergies and the pursuit of global initiatives.
The Board of Directors of GFG will include Lorenzo Grabau, CEO of Kinnevik as Chairman, Oliver Samwer, CEO of Rocket as Deputy Chairman and representatives of the other largest shareholders.
The closing of the deal is expected to happen by the end of 2014.
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