KFL is a holistic financial platform, which facilitates not only debt funding for working capital requirements of the designer but also provides equity funding for brand building, supply chain support & fashion marketing initiatives across the fashion value chain throughout the globe.
i. Equity Investment Model:
Like any private equity and venture capital transaction, KFL has dedicated corpus to invest in the equity of the selected designers to scale the their brand through the following structured investment approach
I) Fashion Superbrand
Under fashion superbrand, KFL would invest in co-creating Super Brands from asset-light business concepts in lucrative categories.
II)Fashion Equity line
Under Fashion Equity line, KFL would invest in creating aspirational brands across different segments and these brands would be positioned to different consumer segments. Under fashion Equity line, KFL would co-own an upcoming brand in a product category of the designer’s expertise and would leverage the same in a manner which would be convenient to the designers.
ii. Venture Incubator
Aimed at transforming a designer’s idea and concept into an established venture by arranging and or providing seed capital, outlining & incorporating strategic planning inputs, building a focused and a capable management team, and deploying appropriate mechanisms, methods and technology for achieving operational excellence. Fashion Capital would invest in selected fashion designers to take their journey forward.
Our empanelled team of experts would advise designers and assist them in designing operating plans, build supply chain support systems, establish sales channels and undertake season-wise financial and design forecasts. The lab helps position companies to raise venture capital and maintains a broad network of institutional investors who can be tapped during the fundraising process.
iii. Venture Accelerator
Aimed at accelerating the designers fund raising capabilities, Fashion Capital fine tunes client’s pitches and networks one on one with investors and industry experts, provides management assistance in strategic planning, whilst expanding the client's customer base. This is typically achieved by having a seat in the company's board of directors. The venture accelerator program is normally applied to companies seeking early to later stage funding possessing reasonable valuations, pre-screened by an in-house investor panel.
iv. Venture mentoring
Aimed at nurturing startup companies at early stage development by soliciting its mezzanine funding requirements and providing critical management and operational expertise to help them strengthen their core competencies and grow effectively.
v. Venture consolidator
Fashion Capital is aimed at enhancing share-holder value through induction of equity through the private placement route or via structured options through the capital markets, whilst administering business process re-engineering and change management across management and operational parameters, whilst expanding customer base and strengthening strategic business networking relationships through long term commitment to consolidate market presence.
vi. Takeover & Buy In & out ventures- MbI/o & Lbo's
KFL invests in and takes over the debt of the companies that holds promise but are saddled with operational or other related problems. KFL acquires management and operational control of the business, services the debt, adds value to it, turns it around, scales it up and sells it to a target albeit at a premium.
vii. Small & Mid-Cap Growth ventures
KFL scrutinizes opportunities, invests and syndicates investments in non-listed & listed small & mid-cap companies across sectors on the basis of PE multiples and validated growth potential.
Under Fashion Capital, KFL offers a unique proposition for the designers who are part of KFL platform wherein KFL would arrange for Working Capital Loan for the designers against orders procured.
KFL also on a case to case basis would facilitate loan to gen next designers who are keen to collaborate on a brand building model, to fund their initial investment and margin money plus working capital for production to be part of the KFL platform.
KFL would invest over INR 1 Crore to fund the complete phygital (physical and digital) infrastructure of the designer, which includes the creation of a physical store and an interactive digital store for both the B2C as well as the B2B national as well as international customers which includes the cost of funding the digital shoots of the apparel/accessories, brand promotion costs, media costs, fashion show costs that are associated in brand building and sales activations on a pure revenue sharing model wherein KFL would not own any share in the designer brand or its intellectual Property. Herein, the designer has to invest a minimum net outlay of 3% as their margin to be entitled to be embanked under this collaboration scheme, which has a stipulated inventory buy back mechanism integrated into the model.