Today, the announcement was made that J.P. Morgan Asset Management will be investing US$45 million in Brazilian company Dafiti. Modeled after Amazon’s Zappos.com, Dafiti is an e-commerce platform for fashion and shoes.
Launched in January of 2011, the company was founded by Thibaud Lecuyer, Malte Huffmann, Malte Horeyseck and Philipp Povel. It has taken off in a huge way over the past year and a half, today offering more than 60,000 products from over 500 brands. Today, Dafiti employs approximately 1,000 professionals – a huge feat considering it started out with a small 10-person team.
With this injection of cash, the Dafiti team plans to take a number of expansion measures. The company will strengthen its product portfolio, amass more inventory, improve delivery and, importantly, expand into other Latin American locales, namely Argentina, Chile, Colombia and Mexico.
When asked about the investment decision, J.P. Morgan Asset Management Managing Director Robert Cousin commented:
We have been following Dafiti and have been impressed with what the company has accomplished, becoming one of the largest online fashion retailers in Brazil in the span of a year. Dafiti’s loyal and growing customer base, fulfillment capacity and dedication to superior customer service should enable the company to expand upon their leading market position in the months and years to come.
J.P. Morgan is the second major investment player to make a big move in Brazil as of late – Redpoint e.ventures announced a fund of US$130 million to be dedicated to the country just a few weeks ago. As Brazil’s technology industry continues to flourish, led by its booming e-commerce sector, there is no doubt that other funds will soon follow suit.