Case studies - finance for business
Company:
Fushi
Owner: Ranish Jansari
Fushi’s chief executive,
28 year old Ranish Jansari has spent the last two years building up a small
chain of high end juice and cosmetic bars operating within Harvey Nichols stores.
Following its success, Fushi had designs to open its first stand alone store.
Having secured premises in the new, prestigious, Duke of York retail development
on the Kings Road, London, Fushi’s business plan identified the need for
nearly £500,000 of expansion capital.
It was at this point Fushi approached GLE. Having fulfilled all
the selection criteria, Fushi presented to GLE's London Business
Angels network’s (LBA) private investors. Soon afterwards negotiations
started between three business angels investors and Steven Gee, who became the
lead investor and Board member.
Between them they invested £180,000, but Fushi was still short of £300,000. So, they approached London Seed Capital, GLE’s co-investment fund, who also agreed to back the investment. With this secure, they were also able to raise £200,000 through a loan from LBA sponsors Barclays Bank.
Ranish Jansari of Fushi comments:
"Having had little success in the business angel market, in 2002 I met Anthony Clarke, managing director of LSC and director of LBA. His advice and introductions has led me to successfully raise all the funds needed in just over three months. LSC was also extremely helpful in tying the whole finance package together and pushing the deal through. The experience of two of the LBA angels on the Board of Fushi, will also add value as we move into the next phase of growth."
Steven Gee, lead angel investor comments:
“Fushi is a very exciting investment for me. Ranish has achieved significant progress by himself, but Fushi now has the opportunity to exploit its foothold in the market, both with additional Board support and almost £500,000 of new money. I was delighted to have co-investment support from LSC who assisted me considerably in structuring the deal and pushing the process through”.
Anthony Clarke, managing director of LSC is also confident about the investment,
“We have been consistently impressed by Ranish since meeting him. He has almost single handed built up Fushi from scratch into a company turning over £250,000 p.a. in two years from two Harvey Nichols concessions…. all achieved with £50,000 of his own money and buckets of his sweat equity. This investment clearly fits LSC’s model; we are backing a committed entrepreneur with a strong lead investor who is investing over £85,000 of his own money and taking an active role in the business. He is also supported by another of our angels who is investing £50,000 and joining the Fushi Board. Fushi’s new retail unit off the Kings Road is exactly the stepping stone this company needs to move the company up to the next level”.
For more information about LBA visit www.lbangels.co.uk or for London Seed Capital visit www.londonseedcapital.com
Fushi’s website is www.fushi.co.uk. The outlets are located in the cosmetics departments of Harvey Nichols in Knightsbridge, Edinburgh and Manchester.