FUNDING
May 17, 2023 | 32 6 minutes read
With a 95 percent growth in FY23, the men’s lifestyle label eyes robust pan-India retail and product category expansion with this investment.
XYXX, a leading men’s premium innerwear and lifestyle label crafting apparel for the discerning Indian man, announces the closing of INR 110 Crore (approx USD 13.5 million) Series C funding round, led by Amazon Smbhav Venture Fund. XYXX continues to be backed in this round by all existing institutional investors including Sauce.vc, Anicut Capital, DSG Consumer Partners and Singularity Growth Opportunities Fund.
The investment underscores the exemplary growth and strong demand for XYXX’s new age product offerings across both offline and digital retail formats. This funding announcement further solidifies XYXX’s positioning in the men’s apparel and lifestyle space.
Photo: Yogesh Kabra - Founder, XYXX
On the funding, Yogesh Kabra - Founder, XYXX comments, “We are thrilled to welcome Amazon into our investor group. We've 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.”
On the heels of a robust national omnichannel expansion, XYXX has built a vast network of 18,000+ retailer partners across India, mapping a network of 150+ cities and towns.
Amazon Smbhav Venture Fund, through its official spokesperson stated "Our vision with the $250MM Amazon Smbhav Venture Fund is to empower the next generation of innovative, ground-breaking companies led by visionary founders. We are impressed with the XYXX management team led by Yogesh Kabra and their ability to continuously serve consumers with high quality differentiated selection across categories and multi-channel distribution. 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."
XYXX retails on 14 key digital marketplaces such as Amazon, Flipkart, Myntra, Ajio, amongst others where they have firmly cemented their position amongst the top 3 innerwear brands, for 3 years in a row.
Manu Chandra, Founder of Sauce.vc added, “We have witnessed XYXX’s growth from inception to becoming one of the top 3 national premium men’s innerwear brands today. This round of funding sets the Company on a strong footing for the next few years. We believe profitability emerges from depth in scale and we admire the team’s tenacity in sticking to and scaling its core category. We are excited to keep backing Yogesh and team at every leg of the journey and welcome our new partners.”
In FY 2023, the brand witnessed the launch of XYXX’s first-ever exclusive brand outlet (EBO) in central Mumbai, soon followed by three more EBO’s in Indore, Bangalore and north Mumbai. The brand aims to open another 6 stores and double the EBO scale in FY24.
Dhruv Kapoor, Partner - Anicut Capital says, “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. The brand’s omnichannel approach has paved the way for comprehensive general trade, modern trade, marketplaces and D2C strategies and XYXX shows great potential to accelerate growth on all fronts. We have long-admired the way Yogesh has approached this category and are excited to join Amazon and existing investors in this journey.”
On further expansion plans, Kabra states, “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. We will launch our Silver Cotton-made range of innerwear in an array of exciting signature XYXX designs across channels opening up the brand to a completely different market and consumer set, backed by our extensive retail and online distribution network. In line with our goal to build brand salience, we are also looking to strengthen EBO presence across the west and south of India. Finally, adding large format doors with a razor-sharp focus on commanding shelf space to become the brand of choice for the new-age consumer, continues to be one of our primary objectives.”
About XYXX
XYXX is a proud, homegrown men's lifestyle brand that specializes in underwear, loungewear and athleisure, made from distinctly premium fabrics and gives them a fashionably well-designed edge using cool colors, quirky prints and stellar designs. With its innovation-driven product play, XYXX focuses on technological prowess to deliver exceptional quality, hyper functionality as well as affordability. XYXX has a robust pan-India presence with over 18,000 touchpoints through top MBOs, a strong Modern Trade presence with Shopper’s Stop, Reliance Trends amongst others as well as EBO’s in multiple key cities. XYXX products are available on their website (xyxxcrew.com) and consistently rank amongst the top 3 in most product categories on 14 plus leading e-commerce marketplaces including Amazon, Flipkart, Myntra and Ajio.