Ayala buys 49% of Zalora PH
The Ayala group has entered the e-commerce business with a deal to acquire a 49 percent stake in BF Jade E-Service Philippines, which owns and operates Zalora Philippines.
Zalora Philippines is currently the country’s largest online fashion platform offering a wide range of fashion and lifestyle products.
Conglomerate Ayala Corp. itself announced that it had bought 43.3 percent of BF Jade while in a separate disclosure, Ayala Land said it would own 1.91 percent. BPI Capital Corporation, and Kickstart Ventures Inc. also acquired minority ownership stakes in BF-Jade. BPI Capital Corporation and Kickstart Ventures, Inc. are wholly owned subsidiaries of BPI and Globe Telecom Inc., respectively.
This acquisition is part of Ayala’s strategy to invest in new disruptive businesses that provide innovative solutions to evolving markets, the conglomerate said.
The group recognizes that e-commerce is a unique growth channel that complements existing businesses, drawing on synergies with the rest of the Ayala group.
“This investment demonstrates how we, at Ayala, look at innovation and growth opportunities. We see the potential of e-commerce in the country, and believe that the Ayala group can benefit and add tremendous value to Zalora. With resources in banking, real estate and telecommunications, the investment presents new opportunities for Ayala to generate synergies throughout the e-commerce value chain,” Ayala chair and chief executive officer Jaime Augusto Zobel de Ayala said.
With the evolving behavior and preferences of consumers today, Zalora Philippines’ proprietary retail and logistics platform is seen to be able to secure the needs of a rapidly changing market.
“With the rising demands of the communities that we serve, we believe new business models such as Zalora’s can provide alternative solutions and services that are complementary to our traditional brick and mortar operations. As a group, we have always strived to stay relevant and dynamic, continuously seeking new ways to evolve in line with reaching consumers, and delivering products and services according to their needs,” Zobel de Ayala said.
Zalora Philippines was co-founded in 2012 as part of the global network of the Zalora Group, which is 100 percent owned by the Global Fashion Group (GFG), the world’s largest online fashion platform for emerging markets.
“Through the partnership with Ayala Corporation— one of the country’s longest standing and well diversified business corporations—Zalora Philippines will now not only be able to benefit from the support and expertise of GFG and Zalora but also from the synergies and support of the Ayala companies. We are confident that together, we are in a unique position strengthen the leadership of Zalora Philippines, as we deliver the best online fashion shopping experience to Filipino consumers across the archipelago,” Global Fashion Group CEO Romain Voog said.
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