Online clothing retailer is eyeing floating on the London Stock Exchange as it looks to emulate larger rival Asos.

The young fashion retailer is in discussions with Zeus Capital, which is an investor in the business, to explore strategic options, which include a sale or a float, according to The Independent.

Zeus Capital advised on the float of Bargain Booze owner Conviviality Retail last month.

Manchester-based Boohoo was set up in 2006 by chief executive Mahmud Kamani.

Boohoo grew its pre-tax profits by 79% to £248,790 over the year to 29 February 2012 against sales of £29m.