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Farfetch successfully traded on the stock market with a 42% increase in turnover, valuing the group at $ 7 billion. At the same time, L’Oréal is investing in Partech Africa investment fund, a fund dedicated to innovative technology companies in Africa. For its part, AccorHotels is on the verge of concluding agreements in Africa with the aim of increasing its growth on the continent.
Septembre 26, 2018 | Press Review
Finance
Farfetch ended last Friday its listing on the New York Stock Exchange at $ 28.45. A gain of 42.25% compared to the introductory price and valuing Farfetch $ 7 billion (5.97 billion euros), far exceeding the objectives of the e-commerce platform.
Farfetch, which has been in a deficit since its inception, achieved a 59% increase in revenue in 2017, to $ 386 million.
Farfetch has attracted Artemis, the holding company of the Pinault family, which controls and directs Kering to become shareholders of the company. In addition, the Chinese giant of e-commerce, JD.com, already shareholder of the company after having invested $ 397 million in June 2017, took advantage of the IPO to acquire additional shares in the part of a private placement.
The animal welfare association (PETA) has also decided to invest in Farfetch. PETA said on Monday that its US branch had acquired shares in the e-commerce platform to “push the luxury retailer to give up fur“.
The director of the association said: “As great creators, including Vivienne Westwood, Versace or Gucci have abandoned the fur, Farfetch has no reason to continue to propose unscrupulous brands and who praise the cruelty on his site “.
Business
After investing in Partech International Ventures, Founders Factory and Raise Investissement, L’Oréal bought equity stakes in Partech Africa, a venture capital fund launched in early 2018 and dedicated to innovative technology companies in Africa.
Thanks to this investment, the amount of which has not been disclosed, L’Oréal hopes to form partnerships with startups and entrepreneurs active in the development of innovative products and services to facilitate access to their products for consumers in regions remote.
“With Partech Africa, we want to support these talented entrepreneurs who invent new technological uses in all areas, distribution and consumption,” said Alexandre Popoff, General Manager of L’Oréal Eastern Europe and Africa, Middle East in a statement.
Brand Strategy
AccorHotels is examining opportunities in several major cities in Africa to increase its presence across the continent against competitors like Radisson.
The French group announced in July the creation with Katara Hospitality, manager of high-end hotels owned by the sovereign wealth fund of Qatar, an investment fund with a capacity of more than one billion dollars ($ 850 million euros) to develop hotels in sub-Saharan Africa. This fund will invest in 40 hotels, representing nearly 9,000 rooms, which will be added to the 114 establishments that Accor already operates in Africa under various brands such as Ibis, Novotel and Pullman.
AccorHotels is examining opportunities in Cape Town, Nairobi, Dar es Salaam, Addis Ababa, Dakar, Abidjan and Kampala. The hotel company revealed that agreements are about to be concluded.
“There are a variety of different things on the table, and we have a number of agreements that are about to be reached for these important destinations,” said Mark Willis, the new general manager in the region at Reuters. “We have the opportunity to really have a strong presence across the continent.”
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