Online Fashion Retailer Koovs Raised 21.9M Dollar
Online fashion retailer Koovs has raised £21.9 million (~$32M) through the issue of 87,600,000 new ordinary shares at a price of 25 pence per ordinary share. The funds were raised from both existing and new investors including Ruffer LLP.
The company will use the funds as working capital, and to acquire the remaining 38.6% stake in Koovs Marketing (Koovs India), which will result in Koovs owning 100% of the subsidiary. The 38.6% stake was owned by Infotel, which Koovs will purchase for £9 million ($13.2M). The deal will be complete tomorrow.
In 2014, Koovs raised £22 million 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 £20.4 million from the offering.
Financials: In January, Koovs posted gross sales worth Rs 29.56 crore for the trading period of September 28, 2015 to January 3, 2016. In contrast, the company had posted gross sales worth Rs 9.55 crore in the same period last year. This represented a growth of 210%. At the time Koovs said it was in the final stages of a fundraising round of around £4 million.
Listing on stock exchange: Koovs filed for an IPO on AIM (Alternative Investment Market), a sub-market of the London Stock Exchange that offers smaller companies a more flexible regulatory system than applicable to the main market. Following the completion of IPO, Koovs plc subscribed for shares in Koovs India and became the majority owner of Koovs India with 57.5% stake.
Since foreign direct investment is not allowed in e-commerce in India, Koovs India operates as a wholesale trading entity supplying branded and private label fashion products only to Marble E-retail. Marble E-retail which is independently owned and managed operates the Koovs.com portal under license from Koovs India and act as the retailer for consumers.