LONDON – Europe’s next major tech IPO is on the horizon.
José Neves, chief executive of luxury fashion website Farfetch, told The Telegraph that a float would be “the next logical stage” for his company.
A Sky News report in June suggested Farfetch was close to picking bankers to underwrite a $5 billion (£3.85 billion) IPO in New York.
Farfetch hasn’t commented on the speculation until now.
Neves said: “It’s the next logical stage for the company.
“We are very well funded and we are cash flow positive so we don’t have to raise funds … but we have venture capitalists and private equity firms as investors and they look for an exit.”
Neves also said Farfetch was like a hybrid of two other startups, saying: “We are like an OpenTable plus Deliveroo.”
A Farfetch IPO might reignite the British tech IPO market, which has stalled since the UK voted to leave the European Union. Like most other European entrepreneurs, Neves is not a fan of Brexit.
He told The Telegraph: “I see no upside to Brexit from a business point of view. I won’t get into the politics. We won’t be, and haven’t been, too affected so far as we source and ship to 40 different countries. But I am concerned about what happens to our talent as we have 25 different nationalities, including myself, at Farfetch.”
Founded in 2008, Farfetch has raised $693.8 million (£535 million) to date, making it one of the best funded private tech startups in Europe. The company was valued at $1.5 billion (£1.1 billion) in a funding round last year, making it one of Britain’s few “unicorns” – private companies worth over $1 billion (£771 million).
Its investors include Advent Venture Partners, Felix Capital, and Condé Nast. Earlier this year, Chinese online mall JD.com became one of Farfetch’s biggest shareholders after injecting $400 million (£315.5 million) into the firm.
The firm’s most recent public accounts show it lost £28.6 million on revenues of £87.1 million in 2015.