Clothing and footwear e-tailer Zalando has secured €40.7m (£32.6) in long-term debt financing from a consortium of German banks.
Commerzbank, Sparkasse Mittelthüringen and KfW Bankengruppe will provide the German etailer with the funding, which it intends to invest in its €100m warehouse in Erfurt, due to be completed by 2013. The package also includes a revolving credit facility to support Zalando’s business operations.
Jan Kemper, Zalando chief financial officer, said: “It is a very positive sign that the loan agreements have been successfully concluded.
“The confidence placed in us by the banks shows that we are on the right track to establishing sustainable corporate structures. Through the combination of equity and debt financing we have further strengthened our balance sheet.”
Zalando, which launched in the UK last year, secured investment funding from JP Morgan Asset Management and Quadrant Capital Advisors in the summer to support its European expansion. It currently sells in 14 European countries.
Speaking to Drapers in June, the etailer’s Nordic and UK regional head Michael Lindskog outlined plans to become a significant player in the UK online arena.