The CEO of luxury fashion site Farfetch said an IPO is ‘the next logical stage’

Jose Neves, Founder CEO and Co Chairman at Farfetch 1
Jose Neves, founder, CEO, and co-chairman at Farfetch. Farfetch

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 $US5 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 $US693.8 million (£535 million) to date, making it one of the best funded private tech startups in Europe. The company was valued at $US1.5 billion (£1.1 billion) in a funding round last year, making it one of Britain’s few “unicorns” — private companies worth over $US1 billion (£771 million).

Its investors include Advent Venture Partners, Felix Capital, and Condé Nast. Earlier this year, Chinese online mall became one of Farfetch’s biggest shareholders after injecting $US400 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.