Zalando attempts expansion of business and takes on € 40.7 Million in Debt Financing
The Zappos Clone Wants to Invest in its Logistics Center
Zalando, originally the counterpart to Zappos has expanded its business from shoes into general fashion and announced its plan of long-term debt financing of €40.7 million (approx. $52.6m) which will be supported by Commerzbank, Sparkasse Mittelthüringen as well as KfW Bankengruppe.
The new investment will be used to improve Zalando's logistics center as the company continues to “gun” for scale and it follows a recent round of funding in which J.P. Morgan Asset Management as well as Quadrant Capital Advisors who both own 1% of the company, also added to Zalando's array of backers. Further investors are Rocket Internet, Holtzbrinck Ventures, Tengelmann Ventures, Investment AB Kinnevik and DST Global.
Zalando, launched in 2008, expanded its business from shoes to a broader range of general fashion and started out in its native market of Germany. The e-commerce site is currently live in 12 different markets and Poland as well as Norway are about to be launched too.
By Melanie Marusic