Online fashion retailer Boohoo valued at £560m

Picture: PA
Picture: PA
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FASHION website has been valued at £560 million after a City fundraising delivered a major windfall for its founding family.

The Manchester-based business, which targets the 16 to 24 age range, has secured £300m from investors in a share placing secured ahead of a listing on London’s Alternative Investment Market next Friday.

Founded in 2006 by joint chief executives Mahmud Kamani and Carol Kane, Boohoo has 2.3 million active customers.

Sales soared 70 per cent to £91.9m in the ten months to 31 December, while underlying earnings almost trebled to £10.1m.

Members of the Kamani family and other shareholders have received £240m of the placing proceeds, while some of the remainder will be used to implement a £6.5m improvement plan for its Burnley warehouse.

Boohoo is one of a number of companies making their debut on the London market, with others due to float in the next few days including Pets at Home and Poundland.