Rocket Internet’s fashion group now valued at $1.1b, down from last year

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The Global Fashion Group (GFG), managed by German startup machine Rocket Internet, said today a new round of funding it just closed valued it at US$1.1 billion, a huge decline from what it was worth last year.

In a statement, GFG announced it raised US$364 million from existing investors Rocket Internet and its investment fund, Rocket Internet Capital Partners.

Rocket Internet alone invested US$75 million in the group.

“Rocket Internet’s direct and indirect stake after the transaction will be 20.4 percent,” GFG said.

Marie-Luise Klose, Rocket’s global communications manager, told Tech in Asia in an email: “In April, we announced the agreement between the shareholder to fund GFG with EUR 300 million minimum. Now the actual transaction worth EUR 330 million has been closed.”

The funding is said to be a down round – GFG was reported to be valued at US$3.5 billion last year.

Nonetheless, the fresh capital will provide the much-needed support for GFG’s struggling companies – it’s made up of six fashion estores: Jabong in India, Zalora in Southeast Asia, Namshi in the Middle East, The Iconic in Australia, Dafiti in Latin America, and Lamoda in Russia and Eastern Europe.

Rocket’s latest annual report suggested that both Zalora and Jabong were running out of money.

Rocket CEO Oliver Samwer said: “GFG has successfully built its position as market leader in online fashion in many key emerging markets. The recent funding round provides GFG with the necessary capital to continue on that path.”

Converted from euros. Rate: US$1 = EUR 0.91.

(Update at 6:30 pm on July 22: We added new information from Rocket and GFG’s previous valuation.)