Amazon's venture fund leads Rs 110 crore in Indian innerwear maker XYXX
Amazon Smbhav Venture Fund led a new fundraising round of Rs 110 crore ($13.5 million) for the men's knickers and lifestyle brand XYXX. The round also included participation from pre-existing institutional investors such as Sauce.vc, Anicut Capital, DSG Consumer Partners, and Singularity Growth Opportunities Fund.
Yogesh Kabra, founder of XYXX, stated that the company has experienced quick growth since its founding in 2016. "We plan to use the investment to keep doing more of the same, focusing on our core product categories and driving efficiency and profitability through greater scale and better use of technology." "Our immediate focus is on increasing, both in scale and scope, to maintain our present high growth trajectory. As we progress farther within, general trade will continue to be our most significant sales channel.
Singularity Opportunities Growth Fund sponsored a fundraising round in which XYXX raised Rs 90 crore (about $11 million) in August of last year. Although it is highly fragmented and unorganised, the $6.3 billion Indian innerwear market is projected to represent 9% of the entire domestic fashion retail segment.
When the pandemic hit, the segment once known only as a vital piece of clothing saw the rise of the work-from-home and hybrid work cultures as well as rising concern for personal hygiene, fitness, and health. According to the business, this, together with an expanding millennial customer base, propelled the market's expansion.
The premium innerwear market, which is mostly dominated by Page Industries, has recently seen increased activity from major competitors like Aditya Birla Fashion & Retail (ABFRL) and Reliance Retail. More over half of the organised market is under Page's control. Due to stronger connections and the influence of social media, consumers, particularly younger generations, are turning more frequently to smaller and more flexible firms.
“Our vision with the $250 million Amazon Smbhav Venture Fund is to empower the next generation of innovative, ground-breaking companies led by visionary founders. In a short time, XYXX has created strong brand recall with their relentless focus on product market fit and we are excited to work with them for their next phase of growth,” said an Amazon Smbhav Venture Fund spokesperson. XYXX has built a network of over 18,000 retailers in 150 cities and towns across India. The brand posted sales of Rs 105 crore during FY22, which is expected to more than double last fiscal.
The Surat-based company also has stores on over a dozen online stores, including Amazon, Flipkart, Myntra, and Ajio. It recently opened three additional outlets in Mumbai, Bangalore, and Bangalore after opening its first unique brand location. In FY24, the brand plans to treble the EBO scale and add another six outlets.
"The perception of men's innerwear is dramatically changing from that of a need-driven, just essential category to that of an aspirational, fashion-forward category. According to Dhruv Kapoor, partner at Anicut Capital, "XYXX is driving this transformation in India with a strong focus on product innovation and supply chain.
Yogesh Kabra, founder of XYXX, stated that the company has experienced quick growth since its founding in 2016. "We plan to use the investment to keep doing more of the same, focusing on our core product categories and driving efficiency and profitability through greater scale and better use of technology." "Our immediate focus is on increasing, both in scale and scope, to maintain our present high growth trajectory. As we progress farther within, general trade will continue to be our most significant sales channel.
Singularity Opportunities Growth Fund sponsored a fundraising round in which XYXX raised Rs 90 crore (about $11 million) in August of last year. Although it is highly fragmented and unorganised, the $6.3 billion Indian innerwear market is projected to represent 9% of the entire domestic fashion retail segment.
When the pandemic hit, the segment once known only as a vital piece of clothing saw the rise of the work-from-home and hybrid work cultures as well as rising concern for personal hygiene, fitness, and health. According to the business, this, together with an expanding millennial customer base, propelled the market's expansion.
The premium innerwear market, which is mostly dominated by Page Industries, has recently seen increased activity from major competitors like Aditya Birla Fashion & Retail (ABFRL) and Reliance Retail. More over half of the organised market is under Page's control. Due to stronger connections and the influence of social media, consumers, particularly younger generations, are turning more frequently to smaller and more flexible firms.
“Our vision with the $250 million Amazon Smbhav Venture Fund is to empower the next generation of innovative, ground-breaking companies led by visionary founders. In a short time, XYXX has created strong brand recall with their relentless focus on product market fit and we are excited to work with them for their next phase of growth,” said an Amazon Smbhav Venture Fund spokesperson. XYXX has built a network of over 18,000 retailers in 150 cities and towns across India. The brand posted sales of Rs 105 crore during FY22, which is expected to more than double last fiscal.
The Surat-based company also has stores on over a dozen online stores, including Amazon, Flipkart, Myntra, and Ajio. It recently opened three additional outlets in Mumbai, Bangalore, and Bangalore after opening its first unique brand location. In FY24, the brand plans to treble the EBO scale and add another six outlets.
"The perception of men's innerwear is dramatically changing from that of a need-driven, just essential category to that of an aspirational, fashion-forward category. According to Dhruv Kapoor, partner at Anicut Capital, "XYXX is driving this transformation in India with a strong focus on product innovation and supply chain.
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