Boohoo has upscaled its £35m fundraise to £40m before expenses, following strong investor demand and an £8m investment from its founder, Mahmud Kamani.

The firm stated that the fundraise, which was announced yesterday, was oversubscribed at 18 pence per share, which is a 5% discount on its closing share price of 19 pence per share on 17 February.

The purpose of the fundraise was to create additional liquidity and reduce its net debt to adjusted earnings of less than two times in the 2027 financial year.

Alongside Kamani’s investment, independent directors, Iain McDonald and Dan Finley, invested £3m and £150,000 respectively.

However, Frasers Group, which holds over 10% of the company’s existing ordinary share capital, agreed to subscribe 60 million shares, in a move that looks to apply pressure to remove Kamani from the board.

The announcement comes as McDonald announced his intention to step down from him role as non-executive director with immediate effect.

Following the announcement, shares in Boohoo increased by over 8%.

Head of markets at AJ Bell, Dan Coatsworth, stated: "Boohoo’s parent company Debenhams has raised more money than originally targeted, citing strong investor demand. Just over a quarter of the £40m fundraise has come from company directors, the bulk of which from co-founder Mahmud Kamani.

"A further quarter (27%) has come from rival retail group Frasers, which implies it could continue to put pressure on Debenhams to oust Kamani from the board. Frasers tried and failed to get rid of Kamani a year ago as part of broader efforts to overhaul the board amid concerns the business was being mis-managed.

"Frasers has been relatively quiet regarding its investment in Debenhams since publishing an open letter in August 2025 raising concerns about Kamani’s alleged conduct. By participating in the latest fundraise, Frasers maintains its position as a major shareholder and may potentially use this position to continue banging the drum for change in the business."

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