Adili, the recently-launched ethical fashion etailer, is hoping to raise £1.5m by selling a fifth of its equity on AIM, according to various newspaper reports.

The Dorset-based firm plans to use the cash to expand its business by developing its own line of globe-friendly merchandise.

The move comes just over a year after Adili started trading and will reportedly value the firm at between £5.5m and £6m.

CEO Adam Smith said the firm planned to capitalise on growth in both ethical and online retail.

He told The Times:

“The PR generated by blue chip companies such as Marks & Spencer doing fair trade and organic ranges means that has really entered consumer awareness, but the blue chips can’t deliver the full range of goods.

“We’ve really established ourselves in that niche with first mover advantage.”

Adili currently acts as an online ‘department store’ for products that it says “tackle at least one of the environmental and social issues involved in making, transporting and selling clothes”.

It hopes the development of own-brand ranges will help it break even.

As well as Smith, its founders include Quentin Griffiths, founder of Asos.com, and finance director Christopher Powles.

But it has since received private funding from a string of retail experts including ex-John Lewis chief exec Luke Mayhew, former Warehouse boss Peter Davies, and Mike Ellis-Jones, ex-MD of Harvey Nichols.