THE PUBLISHER of Vogue, Glamour and GQ has made further strides into fashion by investing in an online luxury clothing retailer.
Conde Nast has led a fundraising round worth $20m (£13.3m) in Farfetch, the online retailer which sells high-end brands such as Dolce & Gabbana and Alexander McQueen, and has annual sales of $129m. Farfetch, based in London but with operations in 140 countries, will use the money to bolster its sales.
Rather than selling its own stock, Farfetch acts as a platform for boutique brands, and the investment will allow it to reach out to new sellers, as well as develop mobile and tablet apps, its chief executive Jose Neves said yesterday.
He added that the money from Conde Nast, which was joined by venture capitalists Advent Venture Partners, Index Ventures and E.ventures, was currently just a cash investment but could lead to greater tie-ups between the magazine publisher and the retailer. This would see Conde Nast follow in the footsteps of fashion news website-cum-retailer Net-a-Porter, which has been a runaway success.
“The world of ecommerce and media are converging and we would love to be a part of that,” Neves said.
Farfetch claims to have 150,000 customers, with the average transaction on its site costing $680.