Koovs confirms £21.9m capital raising
Koovs, the London-based online retailer, announced that it has raised gross proceeds of £21.9m through the issue of 87,600,000 New Ordinary Shares at a price of 25 pence per Ordinary Share.
Investments came from both existing investors and new institutional shareholders, including Ruffer LLP. The money will be used to fund Koovs' growth plan, including the next phase of its high-profile multi-channel marketing campaign, that will extend to five additional cities from May. Funds will also be used for working capital and some of the funds will go 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.
Koovs has the potential to raise further tranches of funds as part of this capital raising. It has the authority to raise up to an additional £8.1m 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.”
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