Technology

Posted on February 12, 2020 by staff

£5m funding for Sosandar

Technology

Sosandar has secured £5m funding.

The online womenswear brand has issued a placing of 29.4 million shares at 17 pence each – around a five per cent discount – to fund TV advertising spend.

It also raised £7m through the sale of new shares in July last year.

Founded in 2016 by former Look magazine editor Ali Hall and ex-publishing director Julie Lavington, the firm reported a 268 per cent increase in gross profits to £2.44m for the year to March 2019.

Joint CEOs Hall and Lavington said: “We are very pleased to have successfully raised GBP5 million through this placing, with both new and existing shareholders showing their support for the business and our growth plans.

“We are excited that the company is now in a position to continue growing our active customer base, accelerate growth further and work towards establishing Sosandar as the leading fashion brand for our target audience and a profitable business.”

The Wilmslow firm piloted advertising in the North West of England on ITV late last year.

It has also advertised on digital panels at London underground stations.

Sosandar stated: “These new marketing initiatives significantly increased the company’s brand recognition and awareness.

“Given the continued strong performance of the company and the results from its recently accelerated growth strategy, the board believes that the potential opportunity for the company is significantly bigger than previously thought.

“Accordingly, the board believes that it is in the best interests of the company to raise additional equity to allow the company to continue with its accelerated growth plan.”