D2C Menswear brand XYXX Apparels has raised around $11 million in a round led by Singularity Growth Opportunities Fund. The funding also includes a debt infusion of approximately $2 million from Trifecta Capital.
Existing investors including Sauce Venture Capital and DSG Consumer Partners also participated in the funding round. Including the latest round of funding, XYXX has raised around $17 million to date.
XYXX’s last funding round was in June 2021 when it raised INR 30 in its Series A funding round. Indian cricketer KL Rahul is also behind the D2C brand and is also its ambassador from April 2022.
XYXX will use the incoming cash to expand its geographic reach and strengthen its presence in existing markets with a new line of products. XYXX will further use the incoming funds to enter modern retail stores, large format stores and exclusive brand stores.
Founded in 2017 by Yogesh Kabra, XYXX is a menswear brand that manufactures and markets products across various categories including innerwear, casual wear, comfort wear, activewear and winter wear.
The D2C brand currently sells in 14,000 multi-brand stores in 100 cities. XYXX also has a presence among major e-commerce players such as Amazon, Myntra and Flipkart as well as its own website. Kabra noted that XYXX reviewed and excelled in metrics such as burn rate, capital efficiency and gross margins.
The D2C brand follows an omnichannel business model and plans to expand its offline business. XYXX plans to reach 30,000 physical touch points by February 2023, including the launch of 10 exclusive brand stores.
Yash Kela, Founder of Singularity Growth Opportunities Fund, said, “Millennial shoppers today are looking for more comfortable and natural fabrics and like to experiment with new designs and products. We are excited to partner with Yogesh and the XYXX team.”
Kela added, “The men’s innerwear and comfort wear industry in India is a $3 billion opportunity in the mid-premium segment. However, in the last decade, it has seen limited innovation in fabrics, cuts or patterns from leading incumbents.” As part of the transaction, Kela will become a member of the XYXX board of directors.
The State of Indian Startup Ecosystem Report, 2022′, India’s total e-commerce opportunity is set to reach $400 billion by 2025. Of the overall e-commerce market opportunities, fashion and apparel are the third largest with a market size set to reach $33. Bn till 2025, growing at a three-year CAGR of 19%.