UK-based online fashion player Koovs has confirmed that it has received a 3.3 million pounds (over Rs 30 crore) strategic investment from HT Media and Dragon Asia Holdings to fund its marketing and brand building activities in India.
Koovs said it has issued 1.2 crore new ordinary shares at a price of 25 pence per ordinary share to HT Media translating to 8.2% stake in the enlarged issued share capital of the fashion portal
Similarly, the company issued 12 lakh new ordinary shares at a price of 25 pence per share to Dragon Asia Holdings Pte Ltd taking total holding in it to 19.2%.
"This investment shows further momentum in our Capital Raising and supports our focus on marketing in order to accelerate brand awareness and sales growth for Koovs in India. Our ambition remains to become India's number one western fashion destination in India by 2020," Koovs CEO Mary Turner said in a statement.
Koovs said it will continue to use the assets of HT Media to build brand awareness in India and accelerate its growth
In April this year, Koovs
had announced raising of 21.9 million pounds in the initial phase. The second tranche of fund raising from HT Media and Dragon Asia Holdings represent approximately 10% of the existing issued share capital of the company. Koovs added that it is still in discussion with other investors in order to close the current funding round by 30 June 2016.
Koovs noted that Dragon Asia Holdings is connected to Nextwave Ventures, in which Infotel's Anant Nahata is a director. Post this investment, they will together hold 25.5% of the enlarged issued share capital.
Koovs had earlier said it would use 9 million pounds of the 21.9 million pounds fundraise to buy 38.6% stake in Koovs Marketing (Koovs India) from Anant Nahata controlled Infotel E-Commerce Private Limited. Post the second tranche, Koovs said the concert party including Nahata, Exicom Tele-Systems (Singapore), Nextwave Ventures and Dragon Asia Holdings will represent 28% stake of the enlarged issue share capital.
, HT Media
, Dragon Asia Holdings
, Mary Turner
, Anant Nahata