Privalia, one of the main Fashion e-commerces in Spain, has been the protagonist of one of the largest operations in the sector in recent years after being acquired by its French rival Vente-PriveeThis purchase, which is estimated at around 500 millones de euros, strengthens Vente-Privée's position within a competitive European market.
The importance of Privalia in the Spanish market
Founded in 2006 in Barcelona by entrepreneurs Lucas Carne and Jose Manuel Villanueva, Privalia specialized in the sale of fashion online under the business model of flash salesIn just a few years, the company managed to establish itself as a benchmark in Spain and expand internationally, also operating in Italy, Brazil y Mexico. During 2014, e-commerce reached sales of 414 million euros, although it recorded record losses of 126 million, mainly due to the divestment of the German company Dress for Less.
Despite these losses, Privalia managed to maintain a workforce of more than a thousand employees and a registered user base of close to 28 million, which made it an attractive target for companies like Vente-Privée, the latter a pioneer in creating the online flash sales model in 2001, decided to go for the acquisition as part of its European expansion strategy.
Details of the acquisition
The operation, confirmed by both companies in 2016, puts Vente-Privée in a leading position in the fashion e-commerce sector in Europe. According to Jacques-Antoine Granjon, founder and CEO of Vente-Privée, this acquisition will allow them to "strengthen the group's development in Europe and offer a superior value proposition to brands and customers."
Although no official figure for the transaction has been published, sources close to the transaction put it at around 500 millones de eurosThis represents one of the largest sales of a venture-backed startup in Spain to date. Privalia's shareholders included prominent investment funds such as General Atlantic, Nauta Capital and Caixa Capital Risc.
Privalia founders Lucas Carné and José Manuel Villanueva expressed their satisfaction with the alliance and confirmed that will continue to lead the company during a transition period. In addition, the official statement stressed that Privalia will maintain a high level of autonomy and its brand will continue to operate independently in the markets in which it is present.
Impact on the e-commerce sector
With incomes higher than 2.000 millones de euros In 2015, Vente-Privée was already one of the European e-commerce giants before the acquisition of Privalia. The integration of platforms such as Privalia and Eboutic.ch, another e-commerce acquired by the French, strengthens its position in key markets such as Spain and Italy, while allowing it to expand its reach to regions such as Latin America.
The move also comes amid a consolidation in the European flash sales market, where players such as Showroomprive are trying to compete with similar strategies. Indeed, Showroomprive had also shown interest in acquiring Privalia before Vente-Privée closed the deal.
Privalia: a story of innovation and growth
Since its creation in 2006, Privalia was able to take advantage of the e-commerce boom to position itself as a leader in the flash sales segment. Its model consisted of offering products from well-known brands at significant discounts for limited periods of time. Although it faced significant financial challenges, the company showed resilience and managed to capture the attention of international investors.
In its expansion, Privalia opted for international markets such as Brazil and Mexico, where it managed to manage a significant customer base. In addition, its innovative campaigns and customer focus allowed it to Differentiate yourself in a highly competitive sector.
The future after the acquisition
For Vente-Privée, the purchase of Privalia represents an opportunity to consolidate its leadership in Europe and diversify your offer in terms of markets and products. According to Granjon, “the European market is highly fragmented and sufficiently mature for these operations to make perfect sense.”
Privalia, for its part, has the opportunity to benefit from synergies with Vente-Privée to overcome the economic challenges it faced before the acquisition. The integration with Vente-Privée's structure will allow it to optimize resources and expand its reach internationally.
The European e-commerce market is facing a period of growth and transformation, and Vente-Privée’s acquisition of Privalia is a clear example of how companies are looking to strengthen their position in an increasingly competitive environment. This alliance promises to create new opportunities for both consumers and brands that collaborate with these platforms. As e-commerce continues to evolve, acquisitions such as this will redefine the competitive landscape and set a precedent for future strategic alliances in the sector.