Sequoia Capital China has taken a minority stake in Montreal-based SSENSE, valuing the online fashion marketplace at $4.1 billion.
The investment, which is aimed at helping the company expand its presence globally, marks the first time an external investor has taken a stake in the company. Under the terms of the deal, Angelica Cheung, the former editor-in-chief of Vogue China, will join the company’s board of directors. Cheung joined Sequoia Capital China as a venture partner in February this year.
“Sequoia is excited to support SSENSE in its continued global expansion and China acceleration,” said Neil Shen, founding and managing partner of Sequoia Capital China.
SSENSE was founded in 2003 by the company’s chief executive Rami Atallah and his brothers Firas Atallah, who serves as the company’s chief financial officer and Bassel Atallah, who works as the chief operating officer, Business of Fashion reported.
The online marketplace has built its business around offering a curation of established and emerging designers and avant-garde products that cater to the streetwear-meets-luxury market for consumers that are under 40 years old. While the company does not share its revenue, it told Business of Fashion in 2020 that it was expecting its revenue to cross $1 billion by 2020.
SSENSE has seen growing competition from other luxury marketplaces such as Farfetch and Mytheresa, both of which have gone public to raise money and grow their presence. In response, the company has looked to expand into new verticals such as beauty, pets and home. The company also recently opened a new office and distribution center in Brussels to grow and cement its presence in Europe.