Subject to the satisfaction of certain conditions, under existing shareholder authority, Koovs will issue Future lifestyle Fashion with 57,876,600 new ordinary shares at the price of 10 pence per share.
Koovs, the leading e-commerce fashion business, has reached a conditional agreement with Future Lifestyle Fashions Limited (“FLFL”), part of Future Group – India’s largest retail group, for FLFL to subscribe for up to a 29.9 per cent stake in Koovs for around Rs 140 crore. As part of the deal, two representatives of Future Lifestyle Fashion will have two board seats in the Gurugram-headquartered company.
Future Group is among India’s leading consumer goods companies with brands and retail networks in the fashion, food and homeware segments. It owns over 60 brands, operates close to 2,000 retail stores spanning over 22 million square feet and attracts footfalls of over 500 million annually. Future Group also has a digital payment platform, Future Pay, which has an active user base of over 6.5 million. Future Group sells some 30 crores of garments in volume making it one of the top 10 fashion apparel companies in the world.
FLFL owns and markets some 30 fashion brands through exclusive brand outlets, department stores and multi brand outlets, as well as company-operated chains such as Central and Brand Factory. FLFL collectively operates more than 400 stores encompassing over 6 million square feet of retail space and presence across all key segments within the fashion industry. With support from a large retail channel, FLFL also leverages its strong portfolio of own brands that contribute to approximately 40% of total sales, thereby creating a distinctive, integrated fashion play. Led by Lee Cooper, its top six ‘power brands’ contribute approximately 60% of FLFL’s revenue from own brands. FLFL has also successfully invested in fashion brands like BIBA and AND in the past and currently holds investment in other brands like Clarks, Cover Story and Celio.
Lord Alli, Chairman of Koovs, said: “This marks a giant step forward in the Koovs’ journey to win the e-fashion market in India. FLFL with its leadership position as an integrated branded fashion player and the Koovs brand and technology platform are an unbeatable combination. This investment will bring enormous benefits to our customers and partners as well as significant value for all shareholders.”
Kishore Biyani, Future Group Managing Director and Group CEO, said: “In FLFL we have successfully created, grown and invested in leading Indian fashion brands and are excited to partner with Koovs to continue building on FLFL’s ambition. This investment would complement the existing value chain for FLFL as an integrated branded fashion player. FLFL’s strong retail presence backed by owned brands coupled with Koovs online strategy will help reach more customers and create value for all stakeholders.”
Koovs had previously raised funding from Indian media groups – Times of India and Hindustan Times. The company has so far secured $35.4 million in funding.
Source: BW Disrupt