Riverwood and IFC investments conclude the round initiated in May 2014 to further support the company’s expansion in Latin America and the development of new business verticals
São Paulo, March 24 - 2015 -- Netshoes, the largest pure play sporting goods e-commerce company in the world, today announced a capital investment of US$ 45 million led by Riverwood Capital, a growth capital technology group, and IFC, a member of the World Bank Group and the largest global development institution focused exclusively on the private sector. The financial round concludes the investment first received by the company in May 2014 led by GIC, Singapore's sovereign wealth fund, in the amount of US$ 170 million.
The new investment will support and help accelerate Netshoes’ expansion in Latin America, with growing operations in Argentina and Mexico in addition to Brazil, as well as in developing new business verticals, including the recent launch of Zattini, an e-commerce retailer specialized in the fashion segment.
"The arrival of Riverwood and IFC will contribute to our sustainable growth plan, foster innovation, further investments and in offering our customers the most delightful shopping experience", said Marcio Kumruian, Netshoes’ founder and CEO. According to Kumruian, the investment reinforces the confidence of major global funds in the solid economic fundamentals of Netshoes, even in a scenario of economic uncertainty.
"We are very excited about joining the Netshoes family and contributing to its continued growth. Netshoes has become one of the top brands in e-commerce in Brazil and Latin America, and we were impressed with its great customer service and an expanding assortment of attractive products and services targeted to the growing class of online consumers in the region", said Francisco Alvarez-Demalde, founder and general partner of Riverwood.
“Online retail is expanding choice for consumers, creating jobs and promoting development of the retail sector in emerging markets“, said Sean Petersen, IFC Senior Investment Officer in Venture Capital. “Netshoes is bringing world class customer service and logistics to Latin America, and its growth has created new employment opportunities for women and young people”. In fiscal year 2014, IFC committed more than US$593 million of financing to the retail sector globally.
Both Riverwood and IFC will have seats on the Netshoes Board, which is formed by the top company executives, representatives of the investment funds Tiger Global Management, GIC, Temasek Holdings and Kaszek Ventures, along with advisors such as Paul Tagliabue (former NFL Commissioner), Cássio Casseb (former president of Banco do Brasil) and Nilesh Lakhani (former CFO of Yandex).
The company’s 2014 net revenue reached BRL 1.2 billion, 20% higher than in 2013. For the first time, the company had positive operating cash flow in Brazil. "In addition to delivering strong top line growth in a difficult macroeconomic environment, we were able to improve our EBITDA margin and achieve a more efficient and sustainable operations. We are building a very solid foundation for long term growth", said Kumruian.
In the period, Netshoes introduced its new global brand positioning, launched its proprietary brands GONEW and ALL4ONE, debuted its e-commerce focused on fashion (Zattini), delivered triple-digit growth in the Argentina and Mexico operations and, accordingly, is considered the largest pure play sporting goods e-commerce in the world by Internet Retailer. Regarding social networks, the company reached the milestone of over 10 million Facebook fans and was ranked as one of the top 10 retail brands in the world by Social Bakers. In addition, it was named for the fourth consecutive year as one of the 150 best companies to work for in Brazil.
About Netshoes
Netshoes is the largest pure play sporting goods e-commerce in the world. With operations in Brazil, Argentina and Mexico, the company’s mission is to inspire and change people’s lives with more sports and entertainment. Founded in 2000 by Marcio Kumruian, the company started with one physical store in São Paulo City, and two years later, decided to bet on its digital and innovative DNA by launching the first sporting goods online store in Latin America. Today, Netshoes is 100% online and responsible for operating official online stores of Brazilian National Football Team, UFC, NBA, NFL, Oakley, Puma, Havaianas, Timberland, Topper, Mizuno and Globo Esporte, besides official online stores of football popular teams such as Corinthians, São Paulo, Palmeiras, Santos, Cruzeiro, Coritiba, Vasco, Internacional, Mexican National Football Team, Chivas, Pumas, Monterrey, Club America and Cruz Azul. Netshoes also offers sporting goods of its own brands GONEW and ALL4ONE, and operates its newly launched Zattini, e-commerce specialized in the fashion segment.
About Riverwood
Riverwood Capital is a global technology group that helps scale and invests in high-growth businesses in the technology and technology-enabled industries across a variety of verticals and geographies. Riverwood manages more than $2 billion and provides a unique combination of operational, strategic, financial and technical insight to portfolio companies. Riverwood has offices in Menlo Park, CA, New York, NY, and Sao Paulo, Brazil, and is a leading technology investor in Latin America. Please visit www.riverwoodcapital.com.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, IFC uses its capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, IFC provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit www.ifc.org. For more information on venture capital division, visit www.ifc.org/venturecapital.
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