Surat-based XYXX Apparels Pvt Ltd, a premium men’s innerwear brand, has raised Rs 6 crore from an early-stage consumer-focused venture capital fund, Sauce.vc.
XYXX plans to use the capital to aggressively expand its sales and marketing efforts. In addition, the startup will also focus on broadening and accelerating product development.
This March, XYXX announced its first round of seed funding of Rs 2 crore from Sauce.vc., and Govind Shrikhande, ex-MD of Shoppers Stop has joined the brand as a Senior Advisor.
Yogesh Kabra, Founder of XYXX Apparels Pvt Ltd, said,
“As a brand, we would like to introduce XYXX as a fun, quirky yet comfortable essential that has unique propositions to offer. This investment from Sauce.vc is a move in this direction, and is bringing us closer to our goal of allowing everyone to experiment and try out our brand. The investment will also help us rapidly scale across new markets.”
Founded by Yogesh Kabra in 2017, XYXX designs and manufactures comfortable innerwear for men ranging from trunks, briefs, boxers, jockstraps, vests, pyjamas and t-shirts.
The brand is establishing its presence in distributor led multi-brand outlets and large format stores like Central, India. It is also present on major online marketplaces such as Myntra and Amazon as well as has its own website.
The startup said its retail presence is rapidly expanding in India, namely Rajasthan, Gujarat, Maharashtra, Madhya Pradesh, Goa, Chhattisgarh, Punjab and Delhi.
XYXX has recently shifted headquarters to Mumbai while keeping Surat as their production hub.
Manu Chandra, Founder & Managing Director of Sauce.vc, said,
“XYXX has grown fivefold in as many months, beating all our estimates, that too in a very capital efficient manner with better than industry margins. Now with a top team in place and significant investment in the back-end systems we have everything we need to scale to the next level. Growth will be driven by an exciting pipeline of new product and category launches, opening up of new geographies in India as well as new channels. Some deep brand initiatives are also being undertaken over the next two quarters.”
The market size of the innerwear industry is estimated to grow at a CAGR of 10 percent over the next decade to become Rs 74,258 crore by 2027, according to a market analysis by Technopak.