Missguided, is preparing to sell a minor stake in the business for the first time, according to The Mail on Sunday.

If successful, he also told the newspaper the fundraising may be a “stepping stone” to a bigger stake sale or a stock market flotation.

The family-owned business has appointed Rothschild to find potential investors. Market sources said the initiative could raise as much as £100 million. 

Although brand founder Passi has yet to reveal the size of the stake, or its value, he’s willing to sell, he told the newspaper: 'I've done this for 12 years without raising money”. 

He added: “We’ve had some issues but they are now behind us and we've got our magic back. We can still grow this business as we are but we want to grow the business more aggressively. This is not for me to take money off the table, we want to put money into the business”. 

Sales at Missguided rose 40% to around £290 million in the year to March. It was profitable before including costs arising from the pandemic. 

Passi also said he expects turnover to be "closer to £400 million” this year with a focus on UK and US growth. 

He added: “Our customer has been starved of her normal life. But people are getting ready to go out, go to the pub, to festivals. If people can go on holiday as well, I think we are in for a really good time this summer”.