Dafiti, Brazil's leading fashion online retailer, has announced its fourth round of investment, worth USD 65 million. The funding from international investors, structured as cash-for-equity, will be used primarily to bolster Dafiti's logistical operations and expand the company's portfolio of brands and products across the five countries in Latin America in which the company operates: Brazil, Argentina, Chile, Colombia and Mexico.
The new round is led by New York-based Quadrant Capital Advisors, which committed USD 32 million. The additional funding will come from AB Kinnevik, Summit Partners and other investors through a German holding company.
"Led by Brazil, Latin America is one of the fastest growing regions in the world. Brazil's retail market alone is estimated to be worth about $230 billion, driven mostly by domestic demand – and by the end of 2012, the country expects to have 43 million* online consumers," said Dafiti co-founder Philipp Povel. "As Brazil's leading fashion online retailer, with strong operations in Colombia, Mexico, Chile and Argentina, Dafiti is uniquely poised to take advantage of this growing market."
Alejandro Santo Domingo, Managing Director of Quadrant Capital Advisors, echoed the sentiment, saying, "We have been impressed with the success Dafiti has achieved in less than two years, driven by its commitment to operational excellence and customer satisfaction. For these reasons and others, we believe the company is well-poised to go from strength to strength, not just in Brazil, but throughout Latin America."
Dafiti's second round of investment was led by AB Kinnevik, also a fourth-round investor; the third round was led by JP Morgan, which invested USD 45 million.
Launched in January 2011 by founders Malte Horeyseck, Malte Huffmann, Thibaud Lecuyer and Philipp Povel and with initial funding of USD 50 million from Rocket Internet, in Brazil Dafiti today offers more than 80,000 products and 700 Brazilian and international brands. From an original staff of 10, the company today employs more than 1,200 people. Dafiti aims to replicate this success in its other Latin American markets.
Dafiti is a multi-label fashion e-commerce retailer that specializes in apparel, shoes, accessories, beauty and home decor. Started in Brazil, today it operates in five countries across Latin America: