DK Business Network
Economic Laws Practice (ELP) played a pivotal role in advising Cove and Lane Lifestyle Private Limited (“Cove & Lane”), a budding fashion venture specializing in the retail of apparel and accessories, in securing its series seed funding. The funding round saw an investment of approximately Rs.4 crore by Sauce Consumer Venture Capital III, an early-stage consumer-focused investment fund, which acquired a 15.38% equity stake in the company.
As Cove & Lane is still in its pre-revenue stage, the funding marks a significant milestone in its growth trajectory. ELP provided comprehensive legal assistance to the company and its founders, offering strategic guidance on structuring the deal, ensuring compliance, and safeguarding stakeholder interests. The firm took charge of drafting and negotiating the definitive agreements that were instrumental in closing the transaction.
The deal required extensive deliberations over several critical shareholder rights, including events of default, exit mechanisms, share transfer restrictions, investor protection clauses, and governance structures within Cove & Lane. Furthermore, liability considerations related to the investor’s financial commitment were also a key focus of discussions. Given the evolving nature of early-stage investments in the fashion sector, the negotiations were rigorous, addressing various operational and compliance aspects to align the interests of all parties involved.
The transaction was spearheaded by a dedicated legal team at ELP. The core members included Abhishek Sanyal (Partner) and Simran Yadav (Associate), who led the transactional aspects, ensuring seamless execution. Additionally, Sukirti Singh (Associate Partner) and Smriti Tripathi (Principal Associate) provided crucial advisory support on key operational and ancillary agreements, reinforcing the legal framework of the deal.
Cove & Lane’s successful fundraising reflects growing investor confidence in emerging fashion brands that prioritize innovation and consumer engagement. With this infusion of capital, the brand is well-positioned to expand its operations, strengthen its market presence, and carve a niche in the competitive retail landscape. The strategic legal backing from ELP not only facilitated a smooth transaction but also ensured robust investor protections, setting a strong foundation for the company’s future endeavors.