XYXX, a men’s premium innerwear and lifestyle label, announces the close of a INR 90 Crore (approx USD 11 million) in its Series B round of funding, led by Singularity Opportunities Growth Fund, including INR 15 Crore (approx USD 2 million) venture debt from Trifecta Capital. Existing investors – Sauce Venture Capital and DSG Consumer Partners join Singularity Opportunities Growth Fund in the latest round of funding for the brand, bringing the total capital raised by the brand to INR 135 Crore. Yash Kela, Founder- Singularity Opportunities Growth Fund, will join XYXX’s board of directors.
In April 2022, XYXX brought on board ace cricketer KL Rahul as the brand’s first ever brand ambassador for their innerwear and loungewear categories.
XYXX is currently present in over 14,000+ multi-brand outlets, tapping a network of 100 cities. In addition to this, the brand also retails on 14 key digital marketplaces such as Amazon, Flipkart, Myntra, Ajio, amongst others where they have firmly featured amongst the top 5 innerwear brands, quarter after quarter alongside their own website : xyxxcrew.com.
Commenting on the funding, Yogesh Kabra, Founder- XYXX says, “XYXX has been built on strong business fundamentals and a single-minded focus on the bottom line, throughout our fast paced growth. We have consistently checked and excelled at metrics like burn rate, capital efficiency, gross margins amongst others. We have already achieved profitability at the Contribution Margin 2 level and have been looking at a double digit margin for the past 2 quarters. We are well on track to become operationally profitable by the end of the financial year. We have witnessed 300% year-on-year growth during FY22 which serves as both a humbling reminder of the progress we have made in five years and a thrilling look ahead at what we are going to achieve next. We are happy to have Singularity Opportunities Growth Fund as partners in our next phase as we scale new heights and foray into newer markets and categories in the coming months.”
While announcing the investment, Yash Kela, Founder, Singularity Opportunities Growth Fund said “Men’s innerwear and comfortwear industry in India is a $3bn 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 (micromodal, supima cotton) and are keen to experiment with new designs and products. We are excited to partner with Yogesh and the XYXX team as their passion for developing products is infectious. Their rapid growth over the last year shows their understanding of customers’ needs, design prowess and unique value proposition that works across channels.”
Yash further added, “We are at an inflexion point to drive value shift in the decades-old innerwear industry by product innovation and the power of omnichannel distribution and XYXX is on its way to become a leader in this journey”
On the allocation of funds raised, Yogesh said, “Building on our current momentum, our biggest goals for the immediate future are rapid geographic expansion and bolstering our existing markets with a fresh influx of products across innerwear, comfortwear and activewear. We will triple our retail network in the next 6 months with our foray into modern retail, large format stores and EBOs alongside our aggressive MBO expansion. Our short-term goals of establishing a robust retail footprint in the country is in line with our long term goals of achieving market leader status in the category.”
