Online fashion retailer Farfetch plans to interview bankers to help lead it’s New York-based initial public offering.
According to CNBC, the London-based company is aiming for a $5 billion valuation. Farfetch founder and CEO Jose Neves has been reluctant to reveal any lay out plans for an IPO though, in a recent interview with BoF, he admitted that it was the logical next step for the company.
“We don’t have any timing… But it is the next financial milestone for the business, that’s for sure. It’s the best way for a business to get liquidity for their investors because at the end of the day if you have investors, you need to find the liquidity for them, and keep the fantastic team we have.”
The IPO has come at a good time for Farfetch as the retailer has partnered with Chalhoub Group, one of the biggest distributors of fashion and luxury goods to take on the Middle East’s online luxury retail market
Farfetch and Chalhoub will launch an Arabic-language site in the first half of 2018; curate products for the local consumer; and increase domestic supply by bringing Chalhoub’s network of retailers — including Level Shoes, Level Kids and Tryano — as well as other partner franchises to the Farfetch platform.
The retail company was founded in 2008 and started as an e-commerce marketplace offering products from more than 500 independent boutiques and provides technology solutions to support fellow luxury brands and retailers.
Within a decade, the retailer raised more than $700 million in total venture funding, reaching a reported $1.5 billion valuation in May 2016. Its backers include DST Global, Condé Nast and Vitruvian Partners. Farfetch runs offices in 11 cities, including London, Tokyo and Los Angeles and employs over 2,000 staff.
Different from other retailers, Farfetch does not own the inventory it sells, but instead serves as an outlet for brands and boutiques. It avoids the predicting what customers want and the expense of holding it in stock.
The online fashion retail platform connects shoppers to over 700 brands and boutiques internationally, selling established lines like Gucci and emerging ones like Gabriela Hearst.
Farfetch express ships to more than 190 countries worldwide.
