Sense has announced that Sequoia Capital China has taken a minority investment in the company, valuing them at over CA$5 billion ($4.1 billion).
The investment is to fund a global expansion which the ecommerce fashion retailer hopes to capture the Chinese market.
It is also the Montreal-based company’s first ever external investment after being founded by Rami Atallah and his brothers in 2003.
Ssense is well known for its collection of luxury selected brands and its younger audience, 80 per cent of which are under 40 years old.
The company has previously declined to share its revenues however it told Business of Fashion that it aimed to cross the $1 billion revenue mark by 2020 after a surge in interest in the streetwear-cum-luxury market which saw brands such as Louis Vuitton collaborate with popular streetwear label Supreme in 2017.
“Sequoia is excited to support Ssense in its continued global expansion and China acceleration,” said founding and managing partner of Sequoia Capital China in a statement Neil Shen said.
China is a hotspot for luxury ecommerce and platforms such as Alibaba’s Tmall is driving the interest with collaborations with fashion brands including Louis Vuitton.
Farfetch also extended its reach in China by announcing a deal with Alibaba in November 2020 as part of a $1.15 billion investment that valued the new Chinese entity at $2 billion.
Bain projected sales in China will represent as much as 28 per cent of the global luxury revenue by 2025.
Ssense rivals Farfetch and Mytheresa have both gone public in efforts to get on top in the luxury ecommerce market where editorial-style content is a popular marketing tool.