J.P. Morgan to invest in Brazilian Dafiti

Brazilian online fashion retailer Dafiti said on Tuesday that it would receive $45 million from J.P. Morgan Asset Management in a cash-for-equity deal. The investment would be designated to expand into beauty and homeware.

Dafiti, Brazil’s answer to Amazon.com Inc’s popular Zappos.com online shoe and fashion store, says it will use the cash to improve logistics, expand into other segments such beauty and home decor, and to bolster recently launched operations in Argentina, Chile, Colombia and Mexico, reported Reuters.

J.P. Morgan Asset Management will take a stake in Dafiti through a German holding company in an all cash-for-equity investment, summed up Reuters.

"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," Povel stressed.