- GFG completes the sale of its CIS business, Lamoda, and thereby exits Russia, Belarus and Kazakhstan
- With €550m of pro forma cash adjusted for the sale proceeds, GFG has substantial funding to continue developing the #1 online fashion and lifestyle destination in LATAM, SEA and ANZ
- Significant long-term growth opportunity in €230 billion fashion and lifestyle market with low e-commerce penetration
LUXEMBOURG, 12 December 2022: Global Fashion Group (GFG) today successfully completed the sale of its CIS business, Lamoda, to retail fashion investor, Iakov Panchenko. After more than 11 years of building the leading fashion e-commerce destination in the CIS, GFG will no longer operate in the region. GFG has received €95m of proceeds (net of transaction costs) in addition to the cash held in the Lamoda business as at 30 September 2022. As a result, the Group’s pro forma cash as at 30 September 2022, adjusted for the sale proceeds, was €550m.
GFG will continue to focus on capturing the long-term growth opportunity in its €230 billion fashion & lifestyle market across LATAM, SEA and ANZ. Across its three platforms, 12 million Active Customers generated €1.6 billion of Net Merchandise Value through 30 million orders in the twelve months to September 2022. With an assortment of the most relevant global and local brands, an inspiring and seamless delivery, GFG remains focussed on providing a best-in-class customer experience and developing its business models across Retail, Marketplace and Platform Services to strengthen the Group’s position as the partner of choice for brands in its markets.
Christoph Barchewitz and Patrick Schmidt, Co-CEOs, GFG said:
“We extend our deepest gratitude to the Lamoda team for their unequivocal dedication to their customers over the years. We are handing the business over to a new owner who is committed to preserving Lamoda’s responsible operations, culture and 8,000-strong employee base.
Looking ahead, rising e-commerce penetration will continue to drive long-term growth in GFG’s markets. We are committed to delivering on our vision as the #1 online fashion and lifestyle destination in LATAM, SEA and ANZ. We have the team, customer base, brand partnerships, infrastructure and financial strength to drive success, while being people and planet positive”.
Jere Calmes, CEO of Lamoda said:
“Lamoda is proud to have been a part of GFG, delivering on our shared mission to develop and innovate fashion-ecommerce in growth markets. As Lamoda continues its journey under new ownership, we wish all of our global colleagues in LATAM, SEA and ANZ all the best for the future.”
The sale of Lamoda does not cover the Group’s operations in Ukraine, which have been suspended and separated from Lamoda since the start of the war. GFG is saddened by the devastating impact the war continues to have on the lives of innocent people and the Group remains committed to financially supporting its Ukrainian colleagues in rebuilding their lives and future.
Xenon Capital served as financial advisor and Balayan Group served as legal advisor to GFG on this transaction.
About Global Fashion Group:
Global Fashion Group is the leading fashion and lifestyle destination in growth markets across LATAM, SEA and ANZ. From our people, to our customers and partners, we exist to empower everyone to express their true selves through fashion. Our three e-commerce platforms: Dafiti, ZALORA and THE ICONIC connect an assortment of international, local and own brands to over 800 million consumers from diverse cultures and lifestyles. GFG’s platforms provide seamless and inspiring customer experiences from discovery to delivery, powered by art & science that is infused with unparalleled local knowledge. As part of the Group’s vision is to be the #1 online destination for fashion & lifestyle in growth markets, we are committed to doing this responsibly by being people and planet positive across everything we do.