Khaadi said today in a public filing that the International Finance Corporation (IFC) will invest up to $25 million in the organization in exchange for a minority ownership. “This strategic investment will help us to accelerate our growth plans, support future sustainability, and empower us to accomplish our vision of becoming a global brand,” Khaadi’s top management said in an email to its staff.
This would be IFC’s first investment in Pakistan’s fashion retail sector, with the organization promising not just financial support but also strategic advice and a global presence to help Khaadi achieve its goal of becoming a global brand.
IFC offered its plan as a quasi-equity investment via convertible preference shares for up to $25 million in September 2021.
Khaadi’s initial development plan to: grow its operations as it recovers from Covid-19 interruptions by expanding its footprint/retail space; accelerate worldwide online sales; and extend the international shop network is now a step closer to being implemented.
The International Finance Corporation is a non-profit organization that provides investment, consultancy, and asset management services to help developing countries build their private sector. With a presence in over 100 countries, the IFC is a member of the World Bank Group and the largest global development institution concentrating on the private sector in emerging economies.
Khaadi Corporation Limited is one of Pakistan’s leading fashion retailers, with the highest proportion of the formal clothes market. Khaadi began operations in 1998 with one store and has now grown to 62 locations throughout 25 cities in Pakistan, as well as 14 foreign locations in Qatar, the United Arab Emirates, Bahrain, and the United Kingdom.
Khaadi is currently a single-member private limited company, with Shamoon Sultan as its founder, CEO, and sponsor owning 100% of the business’s capital. Shamoon began his career by working for a renowned couture designer for a few years before launching his own clothing line in 1998 under the brand name “Khaadi,” which means “handlooms” in the local language. Khaadi and Shamoon have received numerous local industry honors since its beginning, and Khaadi is now looking to grow globally.
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