World Footwear


South Korean Coupang acquires Farfetch

Dec 19, 2023 United Kingdom
South Korean Coupang acquires Farfetch
The South Korean e-commerce giant has agreed to buy Farfetch in a bailout deal, providing the online luxury platform with 500 million USD in emergency funding. Deal to acquire a 47.5% stake in Yoox Net-a-Porter is off
Coupang has agreed to acquire the business and assets of Farfetch Holdings, affording the luxury giant with 500 million US dollars in emergency funding to continue operations on the consumer front and in providing technology to brands and retailers. The transaction is expected to be closed by early next year. As a result of the agreement, Farfetch will become a private company, wiping out the investments of all shareholders.

“Farfetch will rededicate itself to providing the most elevated experience for the world’s most exclusive brands while pursuing steady and thoughtful growth as a private company. We also see tremendous opportunities to redefine the customer experience for luxury clients everywhere”, commented Bom Kim, Founder & CEO of Coupang.

With headquarters in South Korea and Seattle, Coupang has been listed on the New York Stock Exchange since March 2021. The Fortune 200 company operates in several markets, including South Korea, Taiwan, China, Singapore and India, but its US business remains small – this deal may precisely help to strengthen its presence in this region. Despite reporting 20.6 billion US dollars in net revenue in 2022, it has yet to turn a profit.

On the other hand, Farfetch, which has struggled with a slowdown in the luxury market, M&A missteps and high debt costs, is expected to benefit from the South Korean retailer's expertise in logistics.

“Coupang’s proven track record and deep experience in revolutionizing commerce will enable us to deliver exceptional service for our brand and boutique partners, as well as for our millions of customers around the world. We are thrilled to be partnering with such a respected Fortune 200 company that is committed to investing in innovations that transform all aspects of the customer experience with Farfetch”, said José Neves, Farfetch Founder, CEO and Chairman

Meanwhile, Farfetch’s deal with Richemont to acquire a 47.5% stake in Yoox-Net-a-Porter (YNAP) has been called off. The Swiss-based luxury group said that it “will re-evaluate options for YNAP to best harness its strengths and potential under new stewardship”.

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