An investment round headed by Singularity Growth Opportunities Fund and includes Rs 15 crore ($2 million) in venture financing from Trifecta Capital has closed for XYXX, a millennial-friendly brand in the men’s innerwear and comfort-wear space. The financing was joined by previous investors Sauce Venture Capital and DSG Consumer Partners.
The total amount raised by the startup in this round is Rs 135 Crore.
Singularity Growth Opportunities Fund’s Founder Yash Kela is joining the XYXX board of directors.
Yash Kela, made the announcement, saying, “The men’s innerwear and comfortwear business in India represents a $3 billion opportunity in the mid-premium segment.”
However, the dominant players in the industry have not introduced many new fabrics, silhouettes, or details to the market in the last decade.
Millennial consumers today are more interested in trying out new designs and goods, as well as seeking out more comfortable and natural fabrics (micromodal, supima cotton).
In 2016, the young entrepreneur Yogesh Kabra launched XYXX as a luxury brand of men’s underwear aimed at the modern young Indian man. Since then, XYXX has expanded into an all-around category-busting elevated basics label selling everything from undergarments to activewear to outerwear.
Yogesh remarked, “Throughout our rapid expansion, XYXX has been built on strong business fundamentals and a single-minded focus on the bottom line.”
They have regularly monitored and achieved success in a wide variety of key performance indicators, including burn rate, capital efficiency, and gross margins.
Profitability at the Contribution Margin 2 level has been reached, and for the past two quarters, we have been anticipating a margin in the double digits. We anticipate reaching an operational profit by the end of the fiscal year.”
Growth of 300% year over year, he said, “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” for the startup.
The Surat-based brand is currently present in over 14,000+ multi-brand outlets, tapping into a network of over 100 cities. XYXX also sells on 14 major online marketplaces, including Amazon, Flipkart, Myntra, Ajio, and many others.