Indian e-tailer Koovs to raise 4.5 million pounds

London-listed Indian fashion retailer Koovs, backed by former Asos chairman Lord Waheed Alli and former Asos director Mary Turner as its chief executive, is planning to raise 4.5 million pounds from a share issue as it looks to reach its target of becoming India’s number one western fashion destination by 2020.

Koovs, which is often referred to as an ‘Asos copycat’ as its website bears a striking similarity to Asos, has grown in India of over recent years for selling western fashion brands such as Calvin Klein, New Look, Vans and Warehouse.

Koovs chief executive officer, Mary Turner, who joined the online retailer in October 2015 said: "This capital raising represents the next phase in the process to build our business and reflects the significant confidence that our major shareholders have in our prospects.

“We are already seeing the initial impact of our investment in marketing to build the Koovs brand. With targeted media and a standout creative we are achieving very good results. We will be building on this momentum in the next phase of our marketing campaign and look to continue accelerated growth into 2016.”

Koovs raising funds to expand product range and increase marketing

The Indian online fashion retailer, which was admitted to trading on London’s AIM market in 2014, is hoping to use the capital to fund a product expansion, which includes the launch of additional categories such as casual wear, work wear and a basics range, and an increased marketing campaign across print, television, cinema and out-of-home displays.

Turner added: “Following completion of the Capital Raising, and along with the 1.1 million pounds Directors’ subscriptions in October 2015, the Company will have raised approximately 5.6 million pounds which will be invested in increased marketing and the broadening of the product range as well as to invest in capital expenditure and fund working capital as the Company continues its rapid growth trajectory.”

Koovs, which aims to increase its market share from one to 10 percent, will issue 17.8 million shares at 25 pence each, a 6.4 percent premium on the closing price of 23.5 pence on January 8.

Images: Koovs