Australia-based online tailoring business InStitchu is conquering the UK through a deal with two entrepreneurs in London. The partnership allows the company to save its recent angel investment for its US expansion, according to The Sydney Morning Herald (SMH).
Elliot Suiter and Matthew Hinkley are the co-founders of InStitchu UK, the new subsidiary of the Australian tailor. The two London entrepreneurs own a minority stake in the subsidiary. Australian co-founders Robin McGowan and James Wakefield hold a controlling stake through their ownership of parent firm InStitchu, the report explained.
The partnership was formed out of Hinkley and Suiter's plan to launch a similar firm in the UK. When they encountered InStitchu, they chose to take a minority interest in the company rather than compete or replicate it, the report said.
In late 2014, Aura Capital bought a minority holding in InStitchu, which had an implied valuation of $2.5 million. Although the exact amount was not disclosed, it was reported to be at a six-figure value. InStitchu used the proceeds to acquire footwear company Mantorii. At present, the Australian firm is gearing up for international expansion, SMH reported.
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