Fashion Concierge was established by Daniela Cecilio, Neves’ wife and an early Farfetch employee, who owned 15% of the company when it was acquired by Farfetch in October.
The deal was disclosed in filings for the global online luxury player’s proposed flotation on the New York Stock Exchange later this year. Investors in Fashion Concierge received 45,000 shares in Farfetch as part of the deal and could receive more moving forward depending upon performance.
Farfetch – which has a number of high profile backers from China’s JD.com to publisher Conde Nast and luxury brand Chanel (who made an investment as part of a partnership deal that will see it using Farfetch’s Store of the Future technology in its boutiques) – is said to have chosen to list with NYSE as it enables Neves to keep a firmer grip on the company.
The business operates a dual-class share structure with “B” shares having 20 times more voting power than “A” shares. American investors are more comfortable with such share structures and Neves owns a large chunk of “B” class shares giving him greater power, which the company argued would limit other shareholders’ influence and discourage takeover bids.
Farfetch revealed its intention to float on Monday, confirming months of speculation that it was planning to make a move. It has not yet revealed the number of shares it plans to issue or the price but some industry-watchers suggest it could be valued at as much as $5bn.
Founded in London, just over a decade ago, Farfetch is one of the UK’s most valuable technology start-ups and its platform makes available in one place the stock from hundreds of luxury boutiques and brands around the world. Its white label technology, Black & White, is also used to power websites for the likes of Manolo Blahnik, while its Store of the Future technology aims to bring omnichannel capabilities to luxury brands globally.