Farfetch Gets $500m Lifeline from South Korean Giant Coupang

U.K.-based luxury fashion platform Farfetch Holdings has been acquired by South Korean e-commerce giant Coupang Inc. The acquisition provides Farfetch with a $500 million lifeline and combines Coupang's operational expertise with Farfetch's luxury ecosystem, aiming to enhance global customer experiences.

Transaction Snapshot

  • Deal Value: N/A
  • Deal Type: Acquisition
  • Deal Date: N/A
  • Investors: Coupang Inc.
  • Founders: Jose Neves (Farfetch)

Farfetch, established in 2007 in London, operates as a marketplace for luxury boutiques worldwide, serving over 190 countries. It gained significant traction during the pandemic but has faced challenges recently, with its market value plummeting from $23 billion to just $254.2 million. The acquisition follows Farfetch's struggle to secure new capital and Richemont's decision not to invest further in the company.

The deal is a strategic move by Coupang Inc. to expand its luxury segment and bolster its presence in the Asian markets, including South Korea, Taiwan, Singapore, China, and India. Coupang, known for its diverse services ranging from same-day delivery to video streaming, sees this acquisition as an opportunity to redefine the luxury customer experience globally.

Farfetch's founder Jose Neves emphasized the partnership's potential to deliver exceptional service for brand and boutique partners as well as customers worldwide. Coupang’s CEO, Bom Kim, highlighted Farfetch’s role in demonstrating that online luxury is the future of luxury retail.

The acquisition marks a significant shift for Farfetch, which will now redirect its focus towards providing an elevated experience for exclusive brands and pursuing growth as a private company under Coupang's umbrella. This move is expected to redefine the luxury landscape and customer experience in the luxury goods segment, especially in South Korea, known for the world's highest per-capita spending on personal luxury goods.

📌 If you want more of this, don't forget to subscribe to our newsletter - Deals & Data, where share the latest M&A industry news, macro trends and insights in our weekly roundup.

Back to blog