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Koovs raises Rs 212 cr to fuel India growth
02
May '16
Courtesy: Koovs
Courtesy: Koovs
London-based Koovs has raised 21.9 million pounds (about Rs 212.4 crore) to expand operations in the coming e-commerce market in India.

Koovs, the parent company of Indian lifestyle e-commerce venture of the same name, is listed on the London Stock Exchange.

The company which focuses on the western wear category in India, has seen registered userbase growing to one million. This is an increase of 226 per cent over the last year.

The latest fund raising involves an issue of 87.6 million 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.

"India's online fashion market is expected to increase five-fold by 2020 to 1.5 billion pounds (about Rs 14,559 crore) and we have a clear strategy to accelerate Koovs' growth in this market," Koovs CEO Mary Turner said in a statement.

The capital raising demonstrates the confidence of both new and existing investors in the company's strategy and provides further investment to scale the business, she added.

Koovs aims to become India's number one western fashion destination by 2020 and today's announcement marks a next significant step towards that goal, she added.

Besides, Koovs has authority to raise up to an additional 8.1 million pounds (about Rs 78.5 crore) prior to June 30, 2016.

"In addition, some funds will be used to acquire the remaining 38.6 per cent stake in Koovs Marketing Consulting (Koovs India), as a result of which Koovs will own 100 per cent of its subsidiary," the statement said.

The shares, being bought from Infotel E-Commerce (a company controlled by Anant Nahata) will be purchased for a total cash consideration of 9 million pounds.

According to the Koovs annual financial statements, its Indian arm suffered a pre-taxation loss of Rs 63.25 crore (6.4 million pounds) for the year ended March 31, 2015.

Turner had recently said the company expects to see a three-fold growth in business this year. (SH)

Fibre2Fashion News Desk – India

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