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Boohoo is taking over the fast fashion space faster than ever. | Image courtesy: @boohoo.

Boohoo raises $65 million to fund new warehouse

Boohoo, a British online fashion retailer has raised £50 million ($65 million at current exchange) from investors to fund a new merchandise warehouse.

Investors in the round were undisclosed.

Mahmud Kamani and Carol Kane founded Boohoo group in 2006. The two of them have over 30 years of experience in the fashion and apparel industry and now own a stable of brands including PrettyLittleThing, Nasty Gal and boohooMan.

This year substantial increases in sales has improved the brand’s financial standing, and revenue from its brands’ sales within the United Kingdom and overseas, continues to improve the company’s profits.

The retail group saw a 106 percent increase in sales, making £120 million ($153 million) at the end of May. This more than doubled sales for the same period for the previous year, which were £58 million ($74 million).

“Our performance in the first quarter has been very encouraging across all brands and geographic regions,” Kamani and Cane said in an International Business Times report.

While the founders acknowledge that is still early in the financial year, they remain confident about Boohoo group’s continuing success. 

The firm said that the money from the investment will be used to build a 600,000 square foot warehouse. The new project will house about £2 billion ($2.5 billion) worth of stock, once completed by 2020.

The retailer already has a main warehouse in Burnley, UK that  is 996,000 square feet.  They plan to extend it by another 900,000 square feet. Projected completion of this project is early 2018.

By Leah Jackson

 

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