Bewakoof Brands initiates negotiations to raise capital
22 August 2022, Mumbai
To raise capital and stay afloat Bewakoof Brands has initiated negotiations with Amazon Fashion, Flipkart’s online fashion marketplace Myntra, and US private equity firm Advent International-backed Dixcy Textiles, among potential investors.
As per a Live Mint report, the deal is likely to value the Mumbai-based company at Rs1,000-1,100 crore. Founders hold 30 percent in Bewakoof while investors such as InvestCorp, IvyCap, and Spring Marketing Capital have a controlling 70 percent stake.
The company is alternately also exploring a primary fundraise of $30 million with a clutch of private equity investors to tide over the immediate capital requirement This marks a sharp decline from the $40-50 million Bewakoof had planned to raise at the start of this year.
The firm’s fundraising ambitions have been hit by the ongoing ‘funding winter’ in the startup ecosystem. Startups are facing a severe squeeze in liquidity, as investors turn averse to loosening their purse strings for those lacking a clear path to profitability.
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