British online fashion brand Sosandar has raised over 5 million pounds in a “substantially oversubscribed” share placing as it looks to expand its business with a focus on third-party retail partners.
The company placed 26.2 million new ordinary shares of 20 pence each.
Additionally, the company said one of its directors has subscribed for 150,000 new ordinary shares, raising a further 30,000 pounds of gross proceeds for the company.
The placing and the subscription together result in approximately 5.27 million pounds of gross proceeds.
Sosandar said it is also offering 2.5 million new ordinary shares to raise further gross proceeds of up to 0.50 million pounds.
The company said it would use the money to “capitalise on the growth opportunity with its third party retail partners where currently on average only nine percent of Sosandar’s total product range is available for sale”.
In particular, it said it will focus on investing in stock from the AW21 season onwards, including increasing both the number of styles and the number of units per style to be sold through the third party partner websites.
Focus on third-party retail partners
Last month, Sosandar reported strong sales with third party online retailers John Lewis and Next.
It also launched with Marks & Spencer at the end of March 2021 “with excellent initial sales”.
Since that update, the company said it “continues to trade strongly and in line with management expectations”.
“We are delighted to have completed our successful fundraise, with both new and existing shareholders showing their support for the business and our growth plans,” said co-CEOs Ali Hall and Julie Lavington in a statement.
“As we look forward, we are excited and optimistic about the group’s future prospects. With improved visibility alongside the loosening of restrictions we have seen an increase in sales across all key categories, in particular colourful dresses, tops and denim as customers prepare for a busy summer.”
In the fourth quarter ended March 31, Sosandar reported a 63 percent increase in revenue to 3.94 million pounds.