Surat-based men’s innerwear brand XYXX has raised Rs 90 crore (approx. $11.2 million) in a Series B funding round led by Singularity Growth Opportunities Fund, along with the participation from Trifecta Capital which infused Rs 15 crore in the form of debt in the funding round.
Existing investors Sauce Venture Capital and DSG Consumer Partners also participated in this round. So far, the brand has raised over Rs 135 crore in funding to date.
Founded in 2017 by Yogesh Kabra, XYXX is a new-age men’s wear brand that produces and retails products across innerwear, comfort wear, loungewear, activewear, and winter wear. According to the company’s statement, the raised capital will be used for geographic expansion and bolstering its presence in existing markets with a new range of products.
The brand claims to have a presence across 14,000 multi-brand outlets spread across 100 cities. It also sells its product on popular ecommerce platforms such as Amazon, Flipkart, Myntra, and Ajio.
“The men’s innerwear and comfortwear industry in India is a $3bn opportunity in the mid – premium segment. But it has seen limited innovation on fabric, cuts or designs in the last decade or so from the leading incumbents,” said Yash Kela, Founder of Singularity Growth Opportunities Fund, who will also be joining the XYXX board of directors.
“Today, millennial customers are looking for more comfortable and natural fabrics (micromodal, supima cotton) and are keen to experiment with new designs and products. “XYXX’s rapid growth over the last year shows their understanding of customers’ needs, design prowess, and unique value proposition that works across channels,” Yash added.
“We have consistently checked and excelled at metrics like burn rate, capital efficiency, gross margins amongst others. We have already achieved profitability at the Contribution Margin 2 level and have been looking at a double-digit margin for the past two quarters. We are well on track to become operationally profitable by the end of the financial year,” said Yogesh Kabra.
According to Yogesh, XYXX witnessed a growth of 300% in FY22 and is targeting a 200% growth in net sales by the end of the ongoing fiscal year (FY23). The brand also plans to expand its presence in 30,000 physical touch points by February 2023 which includes 10 exclusive brand outlets, he said.
Source @Indianstartupnews
