My-Wardrobe is in talks with institutional funds about selling a 20% stake in the premium etailer.
My-Wardrobe is seeking another round of investment to accelerate its growth as it targets a total of £100m of sales over the next five years. The last investment was £2m in 2009.
Co-founder Sarah Curran, who set up the business with her husband Andrew in 2006, said the etailer was well placed to grow without the investment but hoped that the undisclosed amount of new capital would allow it to keep its “number one position in online affordable luxury”.
“The investment will mean we have the marketing spend to support growth and increase our buying power for new brands,” she said.
The Currans will not dilute their majority share in the business even if a deal goes ahead. My-Wardrobe will create a further 5 million shares to enable the deal.
“This will be a strategic partner but nothing has been finalised yet,” Curran added.
My-Wardrobe has continued to retain growth of well over 100% on a like-for-like basis with sales in the last quarter of 2009 up 109% to £2.72m.
This week, speculation mounted that luxury etailer Net-a-Porter had received a bid approach from Swiss luxury goods group Richemont, which owns a 29% stake in the business, valuing it at £350m.
It is unclear what involvement Net-a-Porter founder and 18.2% shareholder Natalie Massenet would have in the company moving forward but she has been a driving force behind its success.
Venezuelan investor Baywinds also has a stake in the business.
Net-a-Porter and Richemont, which owns designer brands Alfred Dunhill, Chloé and Shanghai Tang, declined to comment.