Surat-based men’s apparel brand XYXX Apparels Pvt Ltd on Thursday said it has raised Rs 90 crore (around $11.5 million) as a part of its Series B funding round led by Singularity Growth Opportunities Fund.
The round also includes a venture debt of Rs 15 crore from Trifecta Capital. Existing investors Sauce Venture Capital and DSG Consumer Partners also joined the fundraise.
With this round, Yash Kela, Founder of Singularity Growth Opportunities Fund, joined XYXX’s board of directors.
Founded by Yogesh Kabra and Siddhartha Gondal in 2016, XYXX specializes in underwear, loungewear and activewear for men, made from naturally sourced fabrics. Currently, the startup has 14,000 stores across India claimed to have witnessed a sales growth of 300% last year as compared to pre-Covid levels.
In an interaction with VCCircle, Kabra said that the idea is to keep building distribution and we are looking to increase our stores to 25,000 in another six months. We also look to touch revenue of Rs 300 crore in the next 12 months.
“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 and gross margins, among others. We have already achieved profitability at the contribution margin 2 level and have been looking at a double-digit margin for the past two quarters,” he added.
“Men's inner-wear and comfort-wear 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,” said Yash Kela, Founder, Singularity Growth Opportunities Fund said in a statement.
Founded by Kela in 2021, Singularity AMC is a multi-product asset management company, set up with an objective of providing differentiated investment opportunities to large investors across private equity (growth and late stage) in India.
Earlier this month, WebEngage, a user engagement software-as-a-service (SaaS) startup run by Webklipper Technologies Pvt. Ltd, has raised $20 million led by Singularity Growth Opportunities Fund and SWC Global.