(By Balaseshan) JPMorgan Chase & Co.'s (NYSE: JPM) unit will be investing $45 million in Brazilian fashion e-commerce retailer Dafiti that underscores investors' appetite for Brazil's rapid-growing Internet market.
J.P. Morgan Asset Management will take a stake in Dafiti through a German holding company in an all cash-for-equity investment.
"We see this investment as a strong vote of confidence in our vision as well as our business," said Dafiti co-founder Philipp Povel. "This investment will allow us to strengthen our portfolio of products, offering our customers even more brand and product choices; amass more inventory, making delivery of our products faster and more efficient; and finally, expand our presence in other countries in Latin America, namely Mexico, Argentina, Chile and Colombia."
Launched in January 2011, Dafiti offers more than 60,000 products and 550 Brazilian and international brands. From an original staff of 10, the company employs more than 1,000 people and has its distribution center in Jundiai, Sao Paulo.
The company was launched with the support of Rocket Internet – the European incubator of internet start-ups – and is led by its four founders Malte Horeyseck, Malte Huffmann, Thibaud Lecuyer and Philipp Povel.
Dafiti is a multi-label fashion e-commerce retailer that specializes in apparel, shoes, accessories, beauty as well as home & decor. It aims to provide customers with the best online shopping experience as well as maximum convenience.
JPM closed Monday's regular session up 1.05% at $37.37. The stock has been trading between $27.85 and $46.49 for the past 52 weeks.