Men’s innerwear and lifestyle brand XYXX has raised Rs 110 crore ($13.5 million) in fresh funding led by Amazon Smbhav Venture Fund. Existing institutional investors including Sauce.vc, Anicut Capital, DSG Consumer Partners and Singularity Growth Opportunities Fund also participated in the round.
“We have seen rapid growth, right from our inception in 2016 and 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,” said Yogesh Kabra, founder, XYXX. “To sustain our current hyper growth trajectory, our immediate focus lies on expanding, both in scale and scope. General trade will continue to be our most important sales channel as we go deeper within existing markets,” he added.
In August last year, XYXX raised Rs 90 crore (about $11 million) in a funding round led by Singularity Opportunities Growth Fund.
The Indian innerwear market, worth $6.3 billion, is estimated to account for 9% of the total domestic fashion retail segment but is highly fragmented and unorganised.
Once known as merely an essential wear, the segment saw work-from-home and hybrid work culture along with increasing awareness about health, fitness, and personal hygiene amid the pandemic. This coupled with a growing set of millennial customers drove the growth of the market, said the company.
Big players including Aditya Birla Fashion & Retail (ABFRL) and Reliance Retail have recently upped their ante in the premium innerwear segment, which is by far dominated by Page Industries. Page controls more than half of the organised market. Consumers, especially younger generations, are increasingly shifting to smaller and more agile brands due to better connect and social media influence.
“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 brand also sells on more than a dozen digital marketplaces such as Amazon, Flipkart, Myntra, and Ajio. Recently, it launched its first exclusive brand outlet followed by three more stores in Indore, Bangalore and Mumbai. The brand aims to open another six stores and double the EBO scale in FY24.
“The men’s innerwear category is witnessing a dramatic shift from being perceived as a mere essential, driven by need to an aspirational fashion-forward category. XYXX is leading this shift in India with a strong focus on product innovation and supply chain…,” Dhruv Kapoor, partner at Anicut Capital, said.