D2C Brand XYXX To Raise INR 30 Cr To Fuel Business Expansion

D2C menswear brand XYXX has sought the approval of its shareholders to raise INR 29.8 Cr (about $3.4 Mn) in a funding round led by Niveshaay Sambhav Fund.

The round will also see participation from Sauce.VC, DSG Consumer Partners, Anicut Capital, among others.

The startup’s board passed a resolution last month to issue 1,81,818 compulsorily convertible preference shares (Series B2 CCPS) each at an issue price of INR 1,650 per share to raise the sum, according to filings sourced from the Registrar of Companies (RoC).

Niveshaay Sambhav Fund will infuse INR 9.93 Cr in XYXX, while Grand Anicut Fund 3 and Sauce Continuity Fund I will invest INR 7.95 Cr and INR 4.96 Cr, respectively. 

The remaining capital will come from Arun Venkatachalam HUF, DSG Consumer Partners III, Veena Merchants And Advisors LLP, Singularity Growth Opportunities Fund I and Selemium Trust.

The development was first reported by Entrackr.

XYXX said it plans to use the fresh capital to meet its capex requirements, expand its business and strengthen its tech stack.

Founded in 2017 by Yogesh Kabra, XYXX sells products across multiple categories such as underwear, loungewear and athleisure. It sells its products via its website and online ecommerce platforms like Amazon and Flipkart. Besides, it also claims to have a pan-India presence with multi-brand outlets (MBOs) and exclusive brand outlets (EBOs) across more than 18,000 touchpoints in 150+ cities.

XYXX has raised a total funding of over $29 Mn to date. Most recently, it raised INR 110 Cr ($13.5 Mn) in its Series C funding round in May last year. It counts the likes of Sauce, DSG Consumer Partners and Trifecta Capital among its investors.

The Amazon-backed startup announced its first Employee Stock Ownership Plan (ESOP) buyback programme in April last year.  

XYXX managed to reduce its net loss by 21% to INR 35.4 Cr in the financial year ended March 31, 2024 (FY24) from INR 44.9 Cr in the previous fiscal year amid growth in its top line and improvement in margins. Operating revenue jumped 24.15% to INR 128 Cr during the year under review from INR 103.1 Cr in FY23. 

XYXX competes against D2C fashion brands such as Beyoung, The Souled Store, Bewakoof, Bombay Shirt Company, Snitch, DaMENSCH and more.

The fresh investment in XYXX comes at a time when D2C fashion brands are attracting top dollars from venture capital firms and private equity funds. Last year, Rare Rabbit raised INR 150 Cr from A91 Partners, Nikhil Kamath’s investment firm Gruhas, among others.