Future Lifestyle sold a 10% stake in May to LVMH Moët Hennessy Louis Vuitton-owned private equity fund L Catterton Asia for about Rs 900 crore.
Koovs, a leading E-commerce fashion portal, has achieved a conditional agreement with Future Lifestyle Fashions (FLFL), wholly owned part of Future Group, to buy in for up to a 29.9% stake in Koovs subject to administrative and procedural endorsements.
Kishore Biyani’s Future Lifestyle Fashions, part of Future Group, on Wednesday said the organization is securing a 29.9% stake in London-recorded Koovs.com for around `140 crore supported through internal accruals.
Master Alli, Chairman of Koovs, said in an announcement: “This marks a giant step forward in the Koovs’ journey to win the e-fashion market in India. Whitman Howard will act as bookrunners to the Equity Raise.”
Subject as per the general inclination of specific conditions, under existing investor specialist, Koovs will issue Future Lifestyle Fashions with 57,876,600 new normal shares at a cost of 10 pence per share, speaking to 24.8% of the current issued share capital, raising £5,787,660 of money.
Kishore Biyani, CEO, Future Group, stated: “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.”
Prior, Future Group had endeavored to obtain Jabong.com in 2016, however fizzled and that was along these lines purchased over by Flipkart’s unit Myntra.
Future Group Current Business Scenario
1). Has network in fashion, food and homeware segments.
2). Owns over 60 brands.
3). Operates close to 2,000 retail stores spanning over 22 Mn square feet and attracts footfalls of over 500 million annually.
3). Digital payments platform — Future Pay — has an active user base of over 6.5 Mn.
4). Overall, sells some 30 Cr of garments in volume, claims to be among the top 10 fashion apparel companies in the world.
Future Lifestyle sold 10% stake in May to LVMH Moët Hennessy Louis Vuitton-possessed private value finance L Catterton Asia for about Rs 900 crore. The organization is probably going to utilize a piece of this store to secure the stake in Koovs, a senior authority of the organization said.
Arvind Singhal, director, Technopak, stated, “After Myntra, Koovs is the main fruitful mold retailer and offers for the most part private labels through its site. It will be a win-win for both as Future Group can offer its brands on Koovs and the private labels of Koovs can be sold in Future Retail shops.”