Alibaba is reportedly planning to take a sizeable stake in Farfetch, Reuters reports, citing an early scoop from The Information. Sources have suggested that the Chinese company may plunge $300 million USD into the London-based luxury fashion retailer in the near future.
Both parties refused comment but parties with inside knowledge of the affair hint that the partnership will go beyond a mere investment. Sources indicate that Alibaba and Farfetch may join on a new Chinese venture — presumably related to fashion, Farfetch’s strong suit. Richement, the conglomerate that owns companies like Cartier and Yoox Net-a-Porter, is reported to join Alibaba in its Farfetch investment; it has already partnered with Alibaba on a variety of mobile applications.
In response to the news, Farfetch stock rose approximately 16% to $32.59 USD.