People Tree has landed a £1 million cash injection from financier Oikocredit to help fund a year of expansion for the ethical fashion brand.
The financing will be used to support People Tree’s wholesale business with more advance payments to suppliers and to expand support beyond 2,000 artisans and organic cotton farmers in the developing world.
It has taken People Tree’s founder Safia Minney three years to find a suitable investor, after she became frustrated at being unable to find finance at a fair rate.
She said: “People Tree is a mission-driven company, so we became exhausted during the search for investment because conventional venture capitalists wanted an unrealistic return and philanthropists don’t understand fairtrade businesses, which invest constantly in their producer groups and campaign on fairtrade issues but are not charities.
“It has been a three year search for a suitable investor and partner. We are delighted to have Oikocredit on board as a long-term strategic partner and it will be great to get on with developing the business now.”
International development finance institution Oikocredit is based in the Netherlands and supports businesses in the developing world.
People Tree will launch its largest catalogue to date at the start of Fairtrade Fortnight, which runs between February 25 and March 9.
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