Farfetch has scored $397m in investment from JD.com, a Chinese e-commerce giant, which will now become one of the largest shareholders in the UK firm.
The UK e-commerce company, which has raised $701.5m to date, will enter into a “strategic partnership” with the Chinese firm in an attempt to increase its market position in the Asian nation.
As a result of the deal, Richard Liu, JD.com’s founder and CEO will join Farfetch‘s board.
“As part of our major luxury push, we could not have found a stronger online partner than Farfetch,” said Richard Liu, chairman and CEO of JD.com.
“We have always believed that the long-term trend of Chinese e-commerce is towards quality over price and this partnership with Farfetch further extends our lead in the battle for the future of China’s upwardly mobile consumers.
“We look forward to deepening our relationships with Farfetch and luxury brands in the months and years ahead,” he added.
José Neves, founder, co-chairman and CEO of Farfetch, said he was “deeply honoured and excited” to announce the partnership with JD.com.
“China is the world’s second largest luxury market,” Neves said, adding: “We are delighted to have such a respected partner, known for its strict protection of IP, with whom to address Chinese luxury consumers.
“This partnership addresses the market’s challenges by combining the Farfetch brand and curation with the scale and influence of the foremost Chinese e-commerce giant. This strategic partnership will provide brands a seamless, immediate access to the luxury consumer and Chinese luxury shoppers with access to the greatest selection of luxury in the omni-channel way of life they have already fully embraced,” he concluded.
Today’s announcement comes after Farfetch made headlines after it closed a $110m Series F in May last year, having attracted the support of Eurazeo, IDG Capital Partners and Temasek Holdings.
However, Farfetch is not the only company that has piqued the interest of Chinese firms. Fellow UK tech giant Skyscanner made headlines when it was acquired by C-trip, a Chinese listed travel company, late last year.