Global Fashion Group, the company behind popular fashion e-tail brands such as Dafiti, Lamoda, Zalora, and The Iconic, has announced its plans to raise €120 million through an equity raise. Unlike a traditional public offering, this equity raise will only be available to institutional investors as part of an immediate share placement. By raising these funds, Global Fashion Group aims to further accelerate its mid-term growth strategy.

The company intends to use the funds to invest in its customer value proposition, technology platform, delivery infrastructure, and overall corporate purposes. By doing so, Global Fashion Group hopes to take advantage of the growing marketplace base, expand its assortment of products, and improve its unit economics. Ultimately, the company aims to drive the adoption of fashion e-commerce in its markets while increasing customer loyalty and shopping frequency.

Despite its rapid expansion, Global Fashion Group has faced challenges in terms of profitability. However, the company has observed profitable quarters on an adjusted EBITDA basis and has experienced overall positive results. In its preliminary Q2 figures released in July, Global Fashion Group showcased improving profitability and cash flow, capitalizing on the accelerated shift towards e-commerce during this challenging year. The company attributes its success to accelerated customer acquisition, growth in marketplace share, and strengthened brand relationships.

This decision to raise funds through an equity raise demonstrates Global Fashion Group’s commitment to seizing the opportunities presented by the fashion e-commerce market. By strategically investing in its operations, technology, and customer experience, the company aims to solidify its position as a leader in the industry.

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