IFC backs Dafiti Group with €15m investment


ecommerceWorld Bank’s investment arm IFC has invested €15m in Latin American fashion e-commerce business The Dafiti Group.

Dafiti has so far managed to secure $275m from its anchor investor Investment AB Kinnevik and other backers including JP Morgan, Quadrant Capital Advisors and OTPP.

The company said IFC’s investment will fund its expansion plans. It noted that Brazil’s e-commerce is expected to grow by 25 per cent in 2014, reaching revenues of R$28.5bn ($11.8bn).

IFC’s director of manufacturing, agribusiness and services Atul Mehta said, “Internet companies are speeding up modernization of the retail supply chain in developing countries, which is helping to promote consumer spending—a key component of economic growth.

“Their investment in logistics, information technology and marketing are rapidly generating employment, especially for women and young people.”

IFC has also agreed to invest up to €10m in online retailer Lamoda, which operates in Russia and Kazakhstan.

In the previous fiscal year, IFC invested more than $600m in the retail sector.

Earlier this month IFC and CDC made a $6m direct investment to support the expansion of Kenya-based Bridge International Academies.

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