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Kogan Defies Pandemic with $115 Million Capital Raise
Kogan has made a huge profit during the pandemic, resulting in a $115 million capital raise.
The company has said the $100 million placement and $15 million SPP (share purchase plan) will enable the company to improve its financial flexibility amid the crisis.
“Kogan.com is well-positioned to take advantage of current market conditions given the Company’s ability to extract synergies through its leading proprietary systems, diversified supply chain and low cost of doing business,” said Ruslan Kogan, the CEO and Founder of Kogan.
Last week, Kogan shared its fourth-quarter results, which have been increasing rapidly as a result of the e-commerce boom. As such, Kogan has suppressed two million active customers, with profits up 50 percent in 11 months.
“While multiple opportunities are presenting themselves, the Company will focus on opportunities that are value accretive and broaden its offering, expand its customer base or enhance its operating model,” Kogan explained.
Kogan’s purchase of furniture retailer, Matt Blatt, promises a strong future for the Aussie online giant.
“Kogan.com is committed to making the most in-demand products and services more affordable and accessible,” Kogan said.
“Our long-term strategy has enabled us to thrive in the current challenging environment, and we are now in a better position than ever to take advantage of growth opportunities. Our low cost of doing business and digital expertise have put us in the driver’s seat to capture market share as the retail industry undergoes significant change.”
In a story from the Australian Financial Review, it was reported that Kogan is now ‘worth five times more than Myer’.
Kogan’s share prices rose from $3.79 in mid-March to $12.38 on Tuesday this week – this was mainly driven by the positive results from the last few months.
Gross sales grew 103 percent in April and May, Kogan confirmed, which lifted the gross sales for the year by 35 percent.
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