German internet company Rocket Internet has unveiled plans to invest in online fashion business Global Fashion Group (GFG).

Under the terms of the agreement, Rocket Internet will underwrite up to roughly €100m of the €300m capital increase in the company.

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Rocket Internet CEO Oliver Samwer said: "We are looking forward to continuing to work with the GFG team as well as Kinnevik and the other GFG shareholders to support GFG."

The completion of the transaction will see GFG valued at €1bn.

"We are looking forward to continuing to work with the GFG team as well as Kinnevik and the other GFG shareholders to support GFG."

GFG currently combines six regional brands, namely Dafiti in Latin America, Lamoda in Russia and CIS, Namshi in the Middle East, The Iconic in Australia, Jabong in India and Zalora in South East Asia.

GFG CEO Romain Voog said: "We very much appreciate the continued support of our key existing investors in GFG.

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"The financing will provide GFG with the necessary capital to continue to execute its strategy of building out its leading position in the online fashion sector in emerging markets.

"During the first quarter of 2016, we have made significant progress on our path to profitability, reducing the loss from operations meaningfully in comparison to the first quarter of 2015, resulting in an improvement of the adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) margin by over 10% points year-over-year.

"This is in line with GFG’s plan to deliver an accelerated path to profitability across its regional businesses while continuing to capture the significant market opportunity available."