Men's brand XYXX raises $11 million in funding
Men’s innerwear brand XYXX Apparels has raised Rs 90 crore (about $11 million) in its latest funding round led by Singularity Opportunities Growth Fund. The round includes a debt infusion of Rs 15 crore (around $2 million) from Trifecta Capital, the company said in a statement. Existing investors including Sauce Venture Capital and DSG Consumer Partners also participated in the fundraising round.
The brand has so far raised Rs 135 crore ($16.9 million), including the latest round. Founded in 2017 by Yogesh Kabra, XYXX is a new-age menswear brand which produces and retails products across innerwear, comfortwear, loungewear, active wear and winter wear. “We have consistently checked and excelled at metrics like burn rate, capital efficiency, gross margins, among others. We are well on track to become operationally profitable by the end of the financial year,” Kabra said.
The proceeds from the current round will be used for geographic expansion and bolstering its presence in existing markets with new range of products, he added. The funding will also be used to enter into modern retail, large-format stores and exclusive brand stores. XYXX follows an omnichannel retail approach and plans to scale its offline presence to 30,000 physical touch points by February next year, which will include the launch of 10 exclusive brand outlets.
The company is looking to launch its first exclusive brand outlet in Mumbai and cementing partnerships with key large format stores. The brand currently retails across 14,000 multi-brand outlets spread across 100 cities, in addition to having an online presence across ecommerce majors such as Amazon, Flipkart, Myntra, and Ajio.
“Men's innerwear and comfortwear industry in India is a $3 billion 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. Today, the millennial customers are looking for more comfortable and natural fabrics and are keen to experiment with new designs and products. We are excited to partner with Yogesh and the XYXX team,” said Yash Kela, founder, Singularity Opportunities Growth Fund.
As part of the transaction, Kela will join XYXX’s board of directors. Founded in 2021, Singularity Growth Opportunities Fund-I is the first fund promoted by Singularity Asset Management. On Wednesday, the investor said it had invested in device lifecycle management platform Servify. Singularity has also made investments across software businesses including Exotel and Webengage, as well as direct-to-customer brand MCaffeine.
The brand has so far raised Rs 135 crore ($16.9 million), including the latest round. Founded in 2017 by Yogesh Kabra, XYXX is a new-age menswear brand which produces and retails products across innerwear, comfortwear, loungewear, active wear and winter wear. “We have consistently checked and excelled at metrics like burn rate, capital efficiency, gross margins, among others. We are well on track to become operationally profitable by the end of the financial year,” Kabra said.
The proceeds from the current round will be used for geographic expansion and bolstering its presence in existing markets with new range of products, he added. The funding will also be used to enter into modern retail, large-format stores and exclusive brand stores. XYXX follows an omnichannel retail approach and plans to scale its offline presence to 30,000 physical touch points by February next year, which will include the launch of 10 exclusive brand outlets.
The company is looking to launch its first exclusive brand outlet in Mumbai and cementing partnerships with key large format stores. The brand currently retails across 14,000 multi-brand outlets spread across 100 cities, in addition to having an online presence across ecommerce majors such as Amazon, Flipkart, Myntra, and Ajio.
“Men's innerwear and comfortwear industry in India is a $3 billion 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. Today, the millennial customers are looking for more comfortable and natural fabrics and are keen to experiment with new designs and products. We are excited to partner with Yogesh and the XYXX team,” said Yash Kela, founder, Singularity Opportunities Growth Fund.
As part of the transaction, Kela will join XYXX’s board of directors. Founded in 2021, Singularity Growth Opportunities Fund-I is the first fund promoted by Singularity Asset Management. On Wednesday, the investor said it had invested in device lifecycle management platform Servify. Singularity has also made investments across software businesses including Exotel and Webengage, as well as direct-to-customer brand MCaffeine.
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