(Yicai Global) Nov. 6 -- China's Alibaba Group Holding and Swiss luxury group Compagnie Financiere Richemont will jointly invest USD1.1 billion in Farfetch to increase the European fashion platform's business in China.

The trio announced the partnership yesterday to accelerate the luxury retail platform's digitization with a new joint venture in China. The London-headquartered company will kick off sales channels on Alibaba's platforms Tmall Luxury Pavilion, Luxury Soho, and Tmall Global.

The two investors will each pour USD250 million into Farfetch China, taking 25 percent stakes in the JV that is expected to be established in the first half of next year. After three years, the pair has a chance to buy a further combined 24 percent stake in Farfetch China.

Moreover, Alibaba and Richemont will each purchase USD300 million worth of Farfetch's zero-coupon senior convertible notes, due in 2030. The proceeds will support the e-commerce platform's long-term goals on its way toward profitability.

Editor: Emmi Laine