The International Finance Corporation (IFC), a member of the World Bank Group, has proposed to invest $25 million in Khaadi, one of the leading apparel retailers of Pakistan in terms of market share.
According to IFC’s disclosure, the proposed investment includes “a quasi-equity investment via convertible preference shares for up to $25 million for IFC’s own account”.
This investment will support Khaadi’s expansion plan. The retailer is looking to grow its operations as it recovers from the disruptions caused by COVID-19.
Khaadi plans to add stores in strategic locations in Tier II and Tier III cities across Pakistan, optimise its existing retail space, accelerate global online sales, and expand its international store network.
Khaadi started operations in 1998 with one store and has expanded its retail network to 62 stores in over 25 cities in Pakistan and 14 international stores in Qatar, UAE, Bahrain, and the UK. It mainly caters to the South Asian communities in these countries.
Shamoon Sultan is the founder, CEO, and sponsor of Khaadi, currently owning 100% of its capital.
Implementation of the project is expected to generate robust local demand for the labour-intensive textile industry, create approximately 850 direct and indirect jobs with up to 20% for women and enhance tax collection by encouraging formalisation of retail and upstream activities.
“The project has the potential to provide more job opportunities for female workers, both for those who work directly with the company and for the female workers in the supply chain such as local artisans, designers, and tailors,” IFC said in the disclosure.
IFC has been actively investing in Pakistan.
In July, IFC proposed a $5-million equity investment in Keenu, a financial technology company that provides end-to-end payment solutions in Pakistan.
Recently, it proposed a $14-million investment in Alliance Healthcare, a local healthcare operator. It also approved a proposal to extend a $25-million senior loan to Packages Limited last year and also proposed an equity investment in EP Systems Ltd, a fintech firm that operates under the OneLoad brand.