PPUS Will Raise $1 Million, Says Pernia Qureshi
The funds would be utilized for marketing purposes and to introduce technological advances into the brand
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Pernia Qureshi, Fashion Entrepreneur and the Architect of Pernia’s Pop-Up Shop (PPUS), an online shopping platform, has revealed that the brand is expected to raise around $1.5 million on marketing and technology which would enable the company to expand further in terms of its reach and clientele.
While speaking to BW Businessworld, Qureshi said that she is in talking terms with some of the top investors to invest in her company.
The business of Pernia’s pop up shop has seen a Compound Annual Growth Rate (CAGR) of around 40 per cent in the last four years with an increase in the number of designers on the marketplace model, expanding product categories or lines. It has witnessed the expansion of domestic and international client base.
In the year 2017, the gross revenue of PPUS expanded for approximately 37 per cent from the previous year. On a monthly basis, it is doing over 600 transactions and is hopeful of organically taking this number to around 750 by the year end.
Over the last 4 years, the business has seen an infusion of approximately Rs 15 crore in investment including the capital expenditure and operating expenses such as salaries, branding expense and website.
“It will be difficult to disclose the profitability of the business at this juncture,” said Qureshi.
When asked about the names of investors the brand would get investment from, she replied, “It would be difficult to spell out the investor names as we are in advanced talks with a few investors who have expressed interest in the company and wish to be associated with the growth story of the company. That being said, we are focusing more on family offices and venture funds with reasonably high exposure in consumer businesses so as to add strategic value to the business and supplement the growth of the business at large.”
Elaborating on the same, she said, that it would be difficult to disclose the valuation of the business right now, but they have taken factors such as the first round of capital raise, growth, scalability of the model and brand quotient into account, for working out the expected stake dilution.
Post the capital raise, PPUS expects the business to sustainably achieve a growth rate of 50 per cent plus in the growth phase.
“We are also in the process of adding secondary revenue channels which should bump up this growth rate in the coming years,” said Qureshi.
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