IFC has stated that it will invest in Rocket Internet’s online retail entities, Dafiti and Lamoda, The World Bank entity said it will support Dafiti’s expansion with an equity investment of up to €15 million, and will invest up to €10 million in Lamoda
Rocket Internet, an online ventures incubator based in Germany, launched the two entities in 2011. Dafiti operates in Latin America, while Lamoda operates predominantly in Russia and Kazakhstan.
Dafiti is one of the leading online retailers in Latin America selling footwear, clothing, accessories, sporting goods, perfumes, beauty products, bed and bath and home furnishings. Its online store has a variety of national and international brands and predominantly operates in Brazil but also in other countries of Latin America, including Colombia, Chile and Mexico.
Lamoda is Russia’s leading online retailer offering a large range of products from apparel, shoes, accessories, to beauty & home. The company focuses on providing a wide online selection of fashion brands and superior customer service running a dedicated courier fleet. Since 2012, Lamoda also operates the leading online shop in Kazakhstan.
IFC stated in its announcement that it supports investments in the retail sector in developing countries because of its economic importance in terms of employment, consumer spending, and tax revenues.
“The explosion in broadband access in developing countries is an opportunity for us to serve new markets of consumers in developing countries by providing access to higher quality goods and services at lower cost,” said Oliver Samwer, co-founder of Rocket Internet.
“Internet companies are speeding up modernization of the retail supply chain in developing countries, which promotes consumer spending—a key component of economic growth,” said Atul Mehta, IFC Global Director for Manufacturing, Agribusiness, and Services. “Their investments in logistics, information technology and marketing are rapidly generating employment, especially for women and young people.”
In fiscal year 2013, IFC committed more than US$600 million of long term and short term financing in the retail sector.
