Koovs plc, a Delhi- and UK-based fashion etailer has 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.
Furthermore, the company has firm indications of interest amounting to approximately $2.5 Mn of additional investment from other investors and has also authorised its broker Peel Hunt to raise up to $2.5 Mn through the Broker Option. The Broker Option will also be at an issue price of 50 pence per Ordinary Share and will be limited to 4 Mn shares, closing at 6pm on November 18, 2016.
Mary Turner, CEO of Koovs said, “Expansion of the ecommerce market in India is both rapid and significant, and Koovs is growing faster than the market rate, so this is an exciting time for us. We have a unique brand position, exclusive products, and a strong following amongst India’s young, aspirational, fashion conscious twenty-somethings.”
This capital raise is part of the final tranche of the company’s three-year investment programme to raise approximately $43.6 Mn, announced in September 2015. It brings the total raised under this programme to $38.6 Mn to date.
Times of India, as a board member and new strategic partner, is expected to provide access to TV, outdoor, and digital platforms in addition to print and radio, and help to incrementally extend Koovs’ coverage nationwide.
Prior to this is April 2016, Koovs raised $31.9 Mn. The funding came through the issue of 87.6 Mn new Ordinary Shares at a price of 25 pence per Ordinary Share. In June 2016, it raised $3.4 Mn strategic investment from HT Media Ltd. It competes with fashion ecommerce players like Myntra, Jabong, Voonik and other online fashion retailing brands.