J.P. Morgan Invests in Zalora
Supporting E-Commerce Growth Across Asia
On September 25, 2012, J.P. Morgan has once again invested in the Samwer brother’s empire. The seed funded E-Commerce company is ZALORA. This is the eighth Rocket Internet company that J.P. Morgan has invested in during a one-month period. Terms of the investment have not been disclosed but some industry insiders estimated it to be one of J.P. Morgan's biggest E-Commerce investments.
The investment is to help ZALORA expand further and become the chief online retailer in Asia. Funding is injected into all of ZALORA’s operations across Asia, which includes Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Taiwan, Thailand, and Vietnam. Regarding J.P. Morgan’s funding, Co-Founder and Managing Director Mato Peric responded, “Their investment, which comes just eight months after the launch of ZALORA, demonstrates our success at bringing fashion to customers throughout the SEA region at the click of a button. Online retail holds tremendous potential in this market of more than half a billion customers, and we look forward to continued growth with our shareholders.”
E-Commerce is booming in Asia. Sites similar to EBay, such as Taobao and Alibaba, have been doing very well in China. It is no wonder that J.P. Morgan sees the opportunity and wants a slice of the cake.
ZALORA is a Singaporean based E-Commerce company under Rocket Internet, which is a German online start-ups fosterer founded by the Samwer brothers. The business model is to take successful online American companies and replicate them globally. ZALORA carries more than 300 brands in women’s, men’s, and children’s apparel and home accessories. Their competitive advantages are in the form of free shipping, thirty-day return policy, and payment upon receiving the item. They have operations in eight Asian countries.
By Luyao Li