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Underwear e-tailer to expand with US backing

FIGLEAVES, the online retailer that made its name selling knickers on the Net, is set for further expansion with the backing of US private equity firm Benchmark Capital.

Chairman Daniel Nabarro, who founded the business with chief executive Michael Ross six years ago, told the Financial Sunday Express that Benchmark had recently bought a 40 per cent minority stake in the business.

Nabarro declined to say how much money was raised but said the funds would be used to develop in the US, Europe and Asia.

The move ties in with Figleaves' plans to grow sales to £100million in the next four years before floating on Nasdaq in the US.

Nabarro has set up a US business called Figleaves. com Inc, which has bought the European and British operations. With funding from American venture capitalists, Nabarro believes Figleaves can get a foothold in that market.

The e-tailer recently drafted in head of Amazon UK Robin Terrell to spearhead the company's growth in Europe.

Figleaves has benefited from the surge in confidence in online shopping. In the year to June 30, 2004, sales soared from £7.1million to £12.2million. Figleaves is setting up localised websites internationally and is likely to target Germany and Japan next.