Koovs signs tech platform deal for Future's Brand Factory
Koovs, the India-focused e-tailer that’s listed in London and designs its products from the UK, has signed a $1.4 million ‘technical services contract’ with the Indian business giant Future Group.
It’s been signed through subsidiary Koovs Marketing Consulting Private Limited and will see it developing, hosting and maintaining an online platform for the Brand Factory arm of Future Lifestyle Fashions Limited (FLFL). The two companies have existing links with FLFL having recently invested in Koovs.
Koovs will receive a one-off payment of $1.4m for the development of the Brand Factory online platform and an ongoing maintenance fee for a term of 24 months. The value of the maintenance fee will be “equal to the cost incurred by Koovs in providing the maintenance of the Brand Factory online platform plus a management fee.” Both the one-off payment and the maintenance fee are expected to be profitable for the company.
On delivery of the platform, it will issue FLFL a “non-exclusive, non-transferable, and non-assignable license.”
It’s a good example of Koovs, which has been through a bruising period that saw it needing to raise new finance, making money via its tech platform.
CEO Mary Turner said its platform "is both market-leading and a proven success in India's rapidly expanding e-commerce market. This contract underlines the significant additional potential for growth that can be achieved by licensing our technology to third parties. Brand Factory is a household name in India, generating revenue of c.£188.5 million 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.”
As mentioned, FLFL is already a stakeholder in the company and Koovs also said Thursday that the balance of the additional funding of £9.5 million to £10.5 million from FLFL will close shortly.
Copyright © 2023 FashionNetwork.com All rights reserved.