Sosandar has raised around £5.4m in a bid to expand its range after recently signing a major deal with Sainsbury's.
The Cheshire-based fashion secured the funding boost through the placing new stocks.
In a statement issued to the London Stock Exchange, the company said it intends to use the net proceeds of the placing "primarily to accelerate the execution of its omni-channel strategy through further investment in stock, enabling increased provision of Sosandar's product range in-store with third party partners including Sainsbury's from autumn winter 2023 onwards".
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It added that the net proceeds will also create "further balance sheet headroom to fast track other growth initiatives as well as enable accelerated investment in the company's proven customer acquisition model".
Shares in Sosandar spiked when it announced its new deal with Sainsbury's last month.
The company entered into an agreement to sell a curated collection of its products through the supermarket giant.
A selected range will begin to be sold through Sainsbury's during 2023, initially online only with selected stores planned later this year.
Sosandar has similar deals with the likes of John Lewis, Marks and Spencer, Next, The Very Group and JD Williams.
In a joint statement co-CEOs Ali Hall and Julie Lavington said: "We are delighted to have successfully completed our placing, with both existing and new investors showing support for our business and future growth plans.
"We welcome the strength of support shown by our existing shareholders and would like to welcome new investors to the company.
"The progress and momentum that we have experienced over the last two years has been substantial. The strength of our brand and distinctive product range continues to resonate incredibly well with our large but underserved demographic and with this strong momentum, the Board believes the opportunity for Sosandar is larger than ever.
"This opportunity has been demonstrated by us delivering a record performance in the third quarter of FY23 with a record number of visits to Sosandar.com and a record quarter for our third party partners.
"We see a number of opportunities for further growth both on our own site and through our third party partners in the coming months and beyond.
"Proceeds of the placing will provide the balance sheet flexibility to enable us to execute our omni-channel strategy, starting with increasing stock from autumn winter 2023 for the in-store launch with Sainsbury's, fast-tracking other growth initiatives and accelerating our proven customer acquisition model.
"Our decision to become an omni-channel business will allow us to enhance our brand equity, accelerate market share growth both in the UK and internationally while also increasing both brand awareness and scalable growth potential.
"We are as confident as ever that the winning formula of our distinctive product range and effective marketing strategy will enable us to capitalise on the sizable opportunity available and continue to move forward on our journey to becoming one of the largest womenswear brands globally."
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