Alibaba Group and Richemont to invest $1.1bn in Farfetch.

Alibaba Group Holding, and Swiss group Richemont, agreed to invest $1.1bn in Farfetch, an inline luxury fashion retailer. As part of the global partnership, Alibaba and Richemont will invest $600m in private convertible notes issued by Farfetch. Alibaba and Richemont will also invest $500m in Farfetch China, taking a combined 25% stake in a new joint venture that will include Farfetch’s marketplace operations in the China region. In addition, Alibaba and Richemont have an option to purchase a further combined 24% of Farfetch China after the third year of the joint venture’s formation. Alibaba and Richemont will also explore additional opportunities to work closely with Farfetch to provide services to luxury brands. “This announcement is a major step in our mission to connect the curators, creators and consumers of the luxury fashion industry. The $1.1bn investment in Farfetch from Alibaba Group, Richemont, and Artemis is a strong validation of our position as the global platform for luxury. The new initiatives with Alibaba Group and Richemont extend Farfetch’s strategy to power the digital transformation occurring across the luxury industry, which has been accelerated by the unprecedented challenges resulting from the Covid-19 pandemic," Jose Neves, Farfetch Founder, Chairman and CEO.