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Online Fashion Retailer Koovs To Raise Another $32 Mn Funding Round Soon

Online Fashion Retailer Koovs To Raise Another $32 Mn Funding Round Soon

Koovs Is Looking To Strengthen Its Presence In The Indian Market

Koovs plc, a Delhi- and UK-based online fashion etailer is looking to raise another $32 Mn in an upcoming funding round.

“We will need up to $69.3 Mn (GBP 50 Mn) to fund our acceleration plan. This will be done in tranches. This year, we are looking at about $32 Mn (GBP 22-23 Mn), which we expect to close in the new few months,” Koovs Chairman Waheed Alli said in a media statement.

The company aims to utilise this funding in strengthening its market presence in India and will also spend in marketing and branding activities.

Here is a glimpse of the funding rounds raised by Koovs till date:

  • In 2014, Koovs raised £22 Mn ($32.1 Mn) by offering 24,110,719 ordinary shares of 1 pence each at an issue price of 150 pence each, which represents for 60.8% of the company’s total issued share capital. After deducting underwriting discounts and other expenses, Koovs got round $28.2 Mn (£20.4 Mn) from the offering.
  • In April 2016, it confirms a capital raise of $31.9 Mn (£21.9 Mn) through the issue of 87.6 Mn New Ordinary Shares at a price of 25 pence per Ordinary Share. This capital raising includes investments from both existing shareholders and new institutional investors including Ruffer LLP.
  • In June 2016, it raised $3.4 Mn strategic investment from HT Media Ltd.
  • In November 2016, it raised a strategic investment of about $4.8 Mn from the Times of India Group and a further $8.7 Mn (£7 Mn) investment by new and existing shareholders. The funding was raised through the issue of 21.7 Mn new Ordinary Shares at 50 pence/share.

Koovs: The Growth And The Plans Ahead

As claimed by the company, as on March 1, 2018, it had a cash balance of $4.8 Mn (GBP 3.5 Mn) and expects a monthly “outgoing” of about $1.03 Mn (GBP 750K). It further claims to have invested about $97.06 Mn (GBP 70 Mn) in the business.

The company expects its sales in FY18 to be $20 Mn (GBP 14.5 Mn). “Demonetisation had hit the sector but now we believe growth is returning and presents a big opportunity,” added Alli.

Koovs had earlier also acquired 100% stake in Koovs India,  its Indian subsidiary, from Infotel E-Commerce Private Limited (“Infotel”), a company controlled by Anant Nahata.  It was an all-cash deal of £9.0 Mn ($13.1 Mn), thereby regularising the Group structure with Koovs India becoming a wholly owned subsidiary of the Company.

Koovs competes in the Indian market with online fashion players like Myntra, Jabong, and more. As the Indian online fashion market is pegged to hit $12 Bn-$14 Bn by 2020, to what extent the current funding round will enable Koovs in achieving its goals, will be something to watch for.

[The development was reported by Financial Express]