[Funding alert] Men’s innerwear brand XYXX raises Rs 30 Cr in Series A round led by Sauce.VC
, a millennial-friendly brand in the men’s innerwear and comfort-wear space on Wednesday, has raised Rs 30 crore in its Series A round of funding from DSG Consumer Partners and Synergy Capital Partners. Existing investor Sauce.VC led this round.
Earlier in September 2019, the Surat-based brand had raised Rs 6 crore in pre-Series A round from Sauce.vc.
Founded by Yogesh Kabra in 2016, homegrown Indian brand XYXX specialises in men's underwear and loungewear, made from naturally-sourced, eco-friendly fabrics and with a fashionable, well-designed edge.
Yogesh Kabra, Founder of XYXX Apparels Pvt Ltd, said,
“Developing better basics starts with fabric innovation and each of our fabrics scores on a range of performance and comfort parameters. Our products are designed to be gentle on the skin, eliminate all unwanted friction, and move with you. This level of attention to detail is in our DNA.
"Our mission is to challenge the status quo and strengthen our position as a proudly homegrown brand at the forefront of clothing technology for unrivalled comfort. In the last year itself, we have witnessed tremendous growth of over 300 percent as compared to pre-pandemic levels. We are happy to have found the perfect partners in DSG Consumer Partners, Synergy Capital Partners, and Sauce.VC to achieve the shared vision of reaching market leadership in the long term.”
Yogesh Kabra, Founder, XYXX
Blending comfort and performance
On the avenues for allocation of the funds, Yogesh said, “We are looking forward to building our brand narrative and community on the tenets of clarity, trust, and conversation. We want to build a world-class customer experience and make buying basics something men would look forward to rather than consider a chore. To craft clothing that ticks all the boxes of functionality, comfort and performance is our true north."
He added that the company is currently at a high-growth stage in its journey and aims to use resources to expand the product portfolio, strengthen retail presence, and build brand awareness.
"We aim to strengthen our physical presence in the country by 3X and have up to 15,000 retail points across the country in the next 12 months," he said.
Currently, the brand is present in over 6,000 strategic offline outlets and all major e-commerce marketplaces including Amazon, Myntra, Flipkart and Ajio among others. XYXX products can also be purchased on the brand’s website: xyxxcrew.com.
The startup claims to have seen growth in the last year with revenues jumping by over 300 percent compared to pre-COVID 19 levels.
Focus on innovation, consumer insight
Commenting on the investment, Manu Chandra from Sauce.VC said, “XYXX has consistently kept a razor-sharp focus on innovation and consumer insight, which has not only helped them create a stir in the market but also firmly established them as a force to reckon with in the segment within four years since inception. We’re proud to continue investing in a brand that leads the charge with technology-backed, sustainable alternatives in the segment.”
The innerwear segment is one of the fastest growing fashion categories in the Indian subcontinent. Projected to reach Rs 21,800 crore by 2028, the segment is expected to grow at a healthy 7 percent CAGR.
"XYXX is a unique brand with a differentiated offering best suited to capitalise on this massive opportunity. Their clarity of purpose and consistent performance both on the business and product fronts is exceptional. We’re thrilled to join forces with Yogesh and the team in their mission to build a market-leading brand over the next decade,”added Hariharan Premkumar, DSG Consumer Partners.