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UK-based fashion ecommerce platform Koovs raises £3.3 million to take on Myntra and others in India

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UK based online fashion company Koovs plc has raised £3.3 million (about 30 crores) from HT media and Dragon Asia as part of its ongoing funding round expected to be closed in June. The funds will be used for marketing and building brand awareness of Koovs in India through media assets of HT Media (Hindustan Times, Mint).

The company has issued 1.2 crore and 12 lakh new ordinary shares at a price of 25 pence per ordinary share to HT media and Dragon Asia respectively. As a result of this transaction, HT media gains 8.2% stake in the fashion platform and Dragon Asia now holds 19.2 % stake in the firm.

On raising new funds, Koovs chief executive officer Mary Turner said,

This investment shows further momentum in our capital raising and supports our focus on marketing in order to accelerate brand awareness and sales growth for Koovs in India. Our ambition remains to become India’s number one western fashion destination by 2020.

Earlier this year, Koovs had announced raising a funding of £21.9 million in April. The company said that it was in talks with other investors as well to close the funding round by June 30, 2016.

A number of startups have emerged in online fashion space in India ,however, Flipkart owned Myntra and Jabong, backed by Rocket Internet are the two main competitors of Koovs.

While Myntra recently brought its desktop website back into action, Jabong too seems to be back on track after many ups and downs. The parent company of Jabong, Global Fashion Group raised €300 million from Rocket Internet this year while Jabong itself registered highest month-on-month profits and lowest cash burn in 24 months.

Koovs too has witnessed a three times jump in sales which touched 29.5 crore during the 14 weeks ending 3 January 2016 as compared to 9.5 crore during the same period of the previous year. It also recorded a over two times increase in its website views which grew to 12.7 million views from 6.4 million views.

In addition to over 150 international fashion brands and exclusive collection, Koovs also offers its own private label on its platform.

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