Koovs raises more cash to support investment
London-listed e-tailer Koovs has launched a fundraising round for up to £18.9 million, it said Friday, via the issue of secured convertible loan notes. Lord Waheed Alli, who is chairman of the company is investing £7.4 million of that sum.
The company, which sells its goods online mainly in the Indian market, said it will invest the money primarily in marketing “to continue to build brand awareness and further enhance customer acquisition growth.”
Koovs said its is now generating “positive gross margins” and the fundraising means it “has the resources to continue to execute its strategic plan.”
The chairman said Friday that the e-tailer “has established a track record of superior growth in India's booming e-commerce market” and that the strong financial and operational progress the company has made to date means “it is now better placed than ever to capitalise on the unique growth opportunity” the market offers.
CEO Mary Turner added that Koovs hopes to become India's number one western fashion destination by 2020 with that market set to grow fivefold to $3.5bn within three years.
Koovs has been growing fast and into year to March 31, revenues rose 87% year-on-year. The company has focused heavily on marketing and has also forged numerous celebrity links.
But it has also prioritised product with several designer collaborations and in May it announced that former Arcadia, New Look, Primark and River Island designer Samantha Chilton had become its head of design.
It is also expanding internationally with a new deal with souq.com for the Middle East and plans to grow in Asia Pacific.
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