Filatex makes e-commerce foray with Vogue4all.com acquisition

Socks maker Filatex Fashions has taken over Kolkata-based fashion e-commerce platform Vogue4all.com. With this, the company has entered the lucrative online shopping marketplace. Sources indicate that Filatex will have to shell out Rs 40 crores towards the acquisition and maintenance of the website. The plan is to re-brand and re-launch two-year old Vogue4mall into a full-fledged multi-brand platform, similar to that of leading marketplace models like Amazon and Flipkart. The Hyderabad-based company also plans to invest around Rs 40 crores in its own socks making unit in Hyderabad as part of its product portfolio expansion plans. The company also plans to launch its own brand of socks. Its range is currently sourced by big brands such as VIP, Inmark, Centro and Adam Phillip.

To raise funding of Rs 80 crores for proposed revamp and expansion, the company aims to opt for a preferential allotment of six crore shares at Rs 5 each with a premium of Rs 5 per share, which will bring in Rs 60 crores. The balance Rs 20 crores will be raised through internal accruals and institutional funding.