E-commerce fashion business Koovs subsidiary has signed an agreement to develop and maintain an online platform for Indian fashion retail chain Future Lifestyle Fashions’ (FLFL) Brand Factory retail format.
Under the technical services contract, FLFL will pay Koovs $1.4m to develop the online platform and an ongoing maintenance fee for two years.
Koovs CEO Mary Turners said: “We believe that Koovs’ technology platform is both market-leading and a proven success in India’s rapidly expanding ecommerce market.
“This contract underlines the significant additional potential for growth that can be achieved by licencing our technology to third parties.
“Brand Factory is a household name in India, generating revenue of £188.5m in the last three quarters, so their decision to work with us to provide the new online platform, is a huge validation of the capability and scalability of our technology.”
FLFL will receive a non-exclusive, non-transferable and non-assignable licence from Koovs following the platform delivery.
As per the terms of the agreement, FLFL will not gain any other rights or interest in the platform, the technology or intellectual property.
Independent corporate broking and advisory firm Peel Hunt has acted as the company’s nominated advisor.
Koovs expects to receive the separate additional funding of £9.5m to £10.5m to be subscribed by FLFL soon. FLFL is a substantial shareholder in Koovs.
FLFL entered a conditional agreement to acquire a 29.9% stake in Koovs, In July.
FLFL owns and markets around 30 fashion brands, and collectively operates more than 400 stores. FLFL is a part of Future Group, which is one of India’s leading consumer goods companies that owns over 60 brands, operates close to 2,000 retail stores.