XYXX, a millennial-friendly brand in the men’s innerwear and comfort-wear space, has raised about $11 million (Rs 90 crore) in its fresh funding round led by Singularity Opportunities Growth Fund.
Trifecta Capital invested Rs 15 crore (about $2 million) in debt in this company
Other investors including existing investors Sauce Venture Capital and DSG Consumer Partners also participated in this round.
The company plans to utilize the funds for geographic expansion and expand its presence in existing markets with new range of products. It will also be used to enter modern retail, large format stores and specialty brand stores.
The Surat-based XYXX was founded in 2016 by Yogesh Kabra, It is a new age menswear brand that produces and retails products in 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 company currently retails in 14,000 multi-brand outlets spread across 100 cities, apart from having an online presence in e-commerce majors like Amazon, Flipkart, Myntra and Ajio.
It is looking to launch its first exclusive brand outlet in Mumbai and strengthen partnerships with leading large format stores.
“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.
The company follows an omnichannel retail approach and aims to increase its offline presence to 30,000 physical touch points by February next year, including launching 10 exclusive brand outlets.
In June 2021, XYXX had raised Rs 30 crore in its Series A funding round from DSG Consumer Partners, Synergy Capital Partners, and others.
Loungewear is considered adaptable because of its design and can be worn on any occasion. They make up for a fantastic casual dress for being at home and going out during the day. XYXX has successfully designed super soft men’s garments that emphasise comfort and understated style while innovating designs and patterns to modernise the product.