Chinese goliath Alibaba is in talks to invest $300m (£231m) in luxury fashion platform Farfetch.

The two companies are also discussing a joint Chinese venture, which would allow Farfetch greater access to the market.

Luxury goods company Richemont, which owns brands such as Cartier and Chloé, is also considering investing in Farfetch alongside Alibaba after the two teamed up last year.

In the tie-up, Richemont and Alibaba created versions of Yoox Net-a-Porter and Mr Porter apps for Chinese consumers, as well as launching storefronts on Alibaba’s Tmall.

Shares in Farfetch surged by 16% following the news of the deal, which would be Farfetch’s third major investment from China.

The fashion retailer already counts Alibaba’s competitors and Tencent as investors.

Farfetch saw record-breaking results in its second quarter to June 30 due to the surge in online shopping amid the pandemic.

The retailer reported a 74% increase in revenues year on year to $365m (£281m) with a record number of new customers.

Farfetch has been approached for comment.