UK-based online fashion player Koovs plc has raised 10.9 million pounds (about Rs 92 crore) from existing and new shareholders, including 3.9 million pounds from the Times of India Group.
“Koovs plc is pleased to confirm a strategic investment in the company of 3.9 million pounds from the Times of India Group and a further 7 million pounds investment by new and existing shareholders, through the issue of 21,700,000 new ordinary shares at 50 pence per ordinary share,” the online firm said in a statement today.
The capital raise is part of the final tranche of the company’s three-year investment programme to raise approximately 35 million pounds that was announced in September 2015. This brings the total amount raised under this programme to 31 million pounds to date.
“The company also has firm indications of interest amounting to approximately 2 million pounds of additional investment from other investors and has also authorised its broker Peel Hunt to raise up to 2 million pounds through the broker option,” Koovs said.
The broker option will also be at an issue price of 50 pence per ordinary share and will be limited to 4 million shares, closing at 6pm on November 18.
“We are delighted to bring on board our new strategic partner in the Times of India, which will give us access to TV, outdoor and digital platforms in addition to print and radio and will help to incrementally extend our coverage nationwide,” Koovs Chief Executive Officer Mary Turner said.
She added that securing funding is an important milestone and a strong validation of investor confidence in the company’s ability to deliver. “Expansion of e-commerce market in India is both rapid and significant, and Koovs is growing faster than the market rate, so this is an exciting time for us,” she said. In June, the company had announced raising 3.3 million pounds (over Rs 30 crore) from HT Media Ltd and Dragon Asia Holdings Pte Ltd to fund its marketing and brand building activities in India.