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Online fashion retailet Koovs to raise Rs 140Cr from Future Lifestyle

Future Lifestyle Fashions Limited (FLFL), part of Kishore Biyani’s Future Group said in its BSE filing that it is investing £15.3 Million (approx. Rs 140 Crore) in online fashion retailer Koovs against 29.9% stakes in the online fashion retailer. The deal is subjected to regulatory approvals.

The company will invest Rs 140 Crore in one or more tranches. In a separate filing, FLFL said that  Koovs will first issue FLFL with 57,876,600 (57.8 million), representing 24.8% stake, raising £5.7 Million of cash. As part of the deal, up to two representatives of FLFL will join the Koovs’s Board.

This deal will help Future Lifestyle to access design capabilities of Koovs as well will get an online e-commerce platform to gain online presence of its fashion brands.

Koovs, which sells fashion clothing and accessories in India, was launched in September 2012 and was listed on the London Stock Exchange in March 2014. The AIM-listed India-focused online fashion retailer also announced the formal opening of a bookbuild to raise up to £10 Million of equity at a price of 15 pence per share. Lord Alli, Chairman of Koovs, has will also invest £1.5 Million in the company.

Future’s Retail 3.0

Future Group is working on its new vision of ‘Retail 3.0, where the group plans to up its e-commerce game. Early this year Future Group’s supply chain solutions subsidiary bought Vulcan Express, the logistics arm of Snapdeal’s parent Jasper Infotech, for Rs 35 crore. Kishore Biyani at that time said that the group plans to boost its last mile capabilities for its e-commerce and retail business.

If you remember, in April 2016, Future Group said that it will buy online furniture retailer FabFurnish for an undisclosed amount, which it did. However, the company has apparently shut down the site and the users are now directed to its own website—www.hometown.in.

Koovs funding

In March, Koovs had said that it is looking to raise £50 million to fund its acceleration plan and that a significant part of the fund will be spent on marketing.  Besides increasing its marketing spend, the fashion e-tailer plans to increase the proportion of its private label from 40% currently to 60% by 2023.

Earlier in November 2016, Koovs raised a total of £10.9 million as an investment, which includes £3.9 million from the Times of India Group and £7 million through the issue of 21,700,000 new ordinary shares at 50 pence per ordinary share from new and existing shareholders. Before that, in May 2016, HT Media had picked up a stake of 8.31% for £3 million in Koovs, which is approximately $4.4 million in an ad for equity deal to be spread over three years.

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    © 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ