Zalora gets P4.9-B new funding

MANILA, Philippines - Online fashion and beauty retailer Zalora Group has secured P4.9 billion ($112 million) worth of funding from institutional investors, which would be used to scale-up its operations and expand its offerings in Southeast Asia (SEA) and Australia.

In a statement yesterday, Zalora Group said the fresh capital from privately held investor group Access Industries, funds managed by US-based asset management firm Scopia Capital Management LLC and other institutional investors, represents the largest single investment ever made into a SEA online fashion retailer.

“The new capital will support the Zalora Group’s effort to scale up operations and gain an even stronger foothold throughout SEA and Australia, serving 600 million potential online shopping customers in the region,” it said.

Zalora Group managing director Michele Ferrario said the investment would allow the group to continue building out its position as the leading fashion and beauty e-commerce retailer in Southeast Asia.

“We are focused on offering the best possible customer experience paired with a unique product offering of local and international brands. We will use this new investment to improve our position as the high-street fashion authority in Southeast Asia,” Ferrario said.

“We will grow our assortment and further enhance the portfolio of our private labels. Our goal is to continue serving up world-class products and services, so everyone in SEA can benefit from the wide selection of products at Zalora,” the official added.

Patrick Schmidt, chief executive officer of Zalora Group’s Australian online fashion retailer – The Iconic, said the investment would enable them “to continue to build the one-stop online shopping destination for fashion, footwear and beyond through a singular focus on customer satisfaction.”

The new round of funding signals investors’ strong confidence in the online retailer amid its growing business.

Earlier this year, the Zalora Group received an investment worth $100 million.