Company Name : Koovs
Funding Amount : £21.9 Million
Investor(s) Ruffer LLP.
Funding Round : Not Disclosed
Koovs has raised gross proceeds of £21.9million (Rs 212 crore) through the issue of 87,600,000 New Ordinary Shares at a price of 25 pence per Ordinary Share. This is the first major investment that has been announced after Government allowed foreign direct investment in online marketplaces.
This Capital Raising includes investments from both existing shareholders and new institutional investors including Ruffer LLP.
The proceeds will be used to fund the company’s growth plan, starting in May with the next phase of its high-profile multi-channel marketing campaign, that will extend to five additional cities. The funds will also be used for working capital. In addition, some funds will be used to acquire the remaining 38.6% stake in Koovs Marketing Consulting Private Limited (“Koovs India”), as a result of which Koovs will own 100% of its subsidiary.
Also the company has authority to raise up to an additional £8.1million at 25 pence per Ordinary Share prior to 30 June 2016.
Mary Turner, CEO of Koovs commented: “India’s online fashion market is expected to increase five-fold by 2020, to £1.5 billion, and we have a clear strategy to accelerate Koovs’ growth in this market. Today’s successful Capital Raising demonstrates the confidence of both new and existing investors in our strategy and provides us with further investment to scale the business. Our near term priority is to continue to build the brand, and we will be launching the next phase of our highly successful marketing campaign in five additional cities. Our ambition remains to become India’s number one western fashion destination by 2020 and today’s announcement marks a next significant step towards that goal.”