How Rukam Capital Backed Yoho Is Making Bold Strikes In India’s Footwear Market

From the elegant sandals and shoes worn in ancient Greece and Rome to Debbie Wingham high heels or an Antonio Vietri classic in gold, diamonds and a fragment of a five-century-old meteorite (priced at $19.9 Mn), footwear has been a style and wealth statement all over the globe. India, too, is putting its best foot forward as the second-largest footwear producer and consumer after China. The country is eyeing a $36 Bn market by 2030 from $15.9 Bn in 2023, at a CAGR of more than 12%.

Much of this surge could be attributed to the domestic market driven by rising disposable incomes and changing preferences due to tech and design innovations. After all, who would not prefer a trendy, all-weather ‘performance’ brand for jogging/hiking or a pair of Insta-worthy dress shoes styled by celebrities and artists? The outcome was a dual market, with aspirational buyers looking for premiumised products and the masses struggling to fit themselves in low-cost, uncomfortable footwear.

The split in the traditional footwear market was bridged by Yoho, a comfort-first, pocket-friendly direct-to-consumer (D2C) brand making functional shoes designed for daily wear. Launched by corporate veterans Ahmad Hushsham and Prateek Singhal, the startup claims it has created a niche for ‘second shoes’ (everyone keeps the best pair to go with one’s formal outfit) with zero compromises on quality and style.

The brand was not initially started for sneakerheads. It aimed to make comfortable shoes like Skechers, a famous American shoe company. However, sneakers were favoured in every market and pushed the founders to innovate Blinc, India’s first hands-free sneakers. 

Yoho also introduced Lofos, a flexible loafer; Freestep, a slip-on with great space for the feet; and Waves, a slipper that offers excellent arch support. Over the years, it has developed a diverse product line for men and women and currently sells 100+ styles and more than 700 SKUs. These are available in different hues, on a par with Western brands, costing around INR 1-2.5K, going by the prices displayed on its D2C site. 

Yoho has adopted an omnichannel business model that targets customers from metros and Tier I and II cities. It aims to reach INR 100 Cr in revenue in FY25, a 400% jump from INR 20 Cr in the previous fiscal year.

The homegrown brand’s unique blend of comfort, style and affordability has made it an investor’s favourite. It recently raised INR 27 Cr as part of its pre-Series B round and secured a total of INR 47 Cr. The funding is used for R&D, product development and strategic overseas expansion.        

From A Chance Meeting To Building A Growth Brand: How Yoho Found Its Mojo 

Yoho was set up to bridge the glaring gap between customer expectations and experience, as most Indians found that comfortable and ergonomic shoes were either unaffordable or unavailable. This mindset changed when everything else gave way to the pandemic demand for health and comfort. Hushsham and Singhal said Yoho’s timing was impeccable, helping it earn INR 3 Cr in the first year of operations.      

The beginning was dramatic as the duo met in Kanpur through a friend. Hushsham, an alumnus of Chatrapati Sahuji Maharaj Kanpur University, ran a small shoe shop after working for Jabong (later acquired by Flipkart’s Myntra) and Paytm Mall, where he led footwear and other categories. Singhal, a mechanical engineer from IIT-Delhi, worked in healthcare (Tata 1mg) and foodtech (Zomato). Their first meeting and Hushsham’s interaction with a customer at the time revealed a shared passion for cushy shoes minus the mind-boggling price tags.

Launching their footwear brand looked like an alpha opportunity. But it was difficult to crack a market overcrowded with homegrown giants (think of Bata or Metro Brands) and top MNCs. Besides, attracting mass market buyers to value-added offerings did not happen frequently. To drive that change, the founders adopted four key strategies.

Research & tech incorporation: Yoho has blended R&D and technologies with its mission to build the very ‘sole’ of its product line.

“From the start, we wanted to deliver comfort to the Indian masses. But achieving the desired level of comfort without raising prices was tough. It took us two years of rigorous research to find suitable and sustainable materials that would last long and reduce waste,” said Hushsham. “We pilot every product, opt for customer feedback and refine it before hitting the market.” 

The brand also uses data analytics and feedback loops to personalise recommendations, identify gaps and discover opportunities.

“Take, for instance, women’s sneakers, which were either too expensive or the styles were all too similar. After speaking with our customers, we saw the gap and recently came up with a large range,” added Hushsham.

Additionally, Yoho is exploring AI solutions to tailor a shoe sizing system for Indian consumers, as these measurements differ from those in the US or the EU.                

Driving down costs: The founders put it to their make-in-India strategy, a robust supply chain (inbound) and efficient and economical outbound logistics for fast deliveries and returns. Logistics can be a significant challenge when the brand expands beyond Tier II markets. Given that the next billion online shoppers will come from Bharat, where the demand for affordable, high-quality footwear is surging, streamlining logistics remains a critical mandate. However, Yoho got into it early and kept its operational costs down.

Marketing that resonates: In spite of its two pillars – comfort and affordability – Yoho would not have been where it is today had it not been for its trendy designs and vibrant colours. These features strongly resonate with the Instagram-first crowd, especially students and young professionals, who want eye-catching footwear that does not lack functionality.

To foster a sense of community beyond traditional advertising, Yoho runs campaigns like Scene Hai, featuring pop-up performances, open mic nights and collaborative art projects to showcase budding talent. These are posted on social media to connect with a wider audience beyond live events. The brand also partners with artists to design its limited-edition footwear, a ‘signature’ offering few could resist. It claims strong marketing outcomes due to these measures, including a return on ad spend (ROAS) at 3:1 and the CAC (customer acquisition cost) at INR 150 against an ARPU (average revenue per user) of INR 757.

Tapping into offline retail, quick commerce for rapid scaling: Yoho has adopted an omnichannel model, with 75% of its revenue coming from online marketplaces like Amazon and Myntra, 20% from its D2C website and only 5% from physical stores. As offline retail plays a critical role in scaling up, the footwear brand has set up kiosks and entered into strategic partnerships with multi-brand outlets (MBOs). It is present in 500 MBOs and aims to expand to 2K stores by 2025 for better visibility and enhanced shopping experience.

Keeping in mind the fast lifestyle and the desire for instant gratification among the urban populace, Yoho is also tapping into quick commerce platforms like Blinkit to ensure 30-45-minute deliveries in metro cities like Delhi, Bengaluru and Hyderabad. This initiative underscores Yoho’s commitment to customer convenience and has yielded a 400% surge in order volume within a month.

How A Collaboration With Rukam Capital Propelled Yoho

Unlike many D2C brands, Yoho has found strategic investor backing to take its growth story forward. For instance, Rukam Capital, an early stage venture capital firm focussed on consumer products and services, has been a major supporter and has invested INR 7 Cr in two rounds.

Besides funding, it has been a hands-on partner, providing strategic guidance and helping shape key business strategies at Yoho. Its consumer insights also helped the brand expand its product range and refine sizing options to cater to a broader market.  

“As India is now home to a rapidly growing organised workforce, the need for appropriate workplace attire, especially quality shoes, is rising. With growing disposable incomes, people who once overlooked footwear now seek stylish, comfortable and affordable options,” said Archana Jahagirdar, founder and managing partner, Rukam Capital.

“This is a significant opportunity, and we researched the category thoroughly before selecting the right brand. Yoho stood out due to Ahmad’s deep knowledge of footwear and Prateek’s deep understanding of scaling consumer businesses.”

The Journey Ahead

A mid-priced and functional footwear range primed for total comfort has not entered the Indian mainstream market until now. Of course, global brands like Skechers and Adidas have made inroads here, but their pricing remains prohibitive. Local players, on the other hand, often lack the quality and innovative approach to address this pain point.

Yoho considers this a unique growth opportunity, especially as its products tick all the boxes. To begin with, it’s not just a comfort thing but also a style thing, not merely about the cushioning, support or the excellent space for the feet but also trendy looks. The style quotient will be enhanced if more artists collaborate with the brand and create unique designs. Additionally, there could be extensive scope to explore biomechanics and India-first innovations to raise the bar for comfort and functionality.              

The brand aims to keep moving. It will soon introduce a kids’ line and sports/athleisure shoes, growing from 100 to 300 styles by 2025. Another significant area of growth will be expanding to markets like the US, the Middle East and Africa, where the demand for affordable, quality footwear is on the rise. 

Expansion at home and abroad will also drive Yoho’s offline growth. It aims to set up exclusive brand outlets (EBOs) powered by interactive merchandising and personalised fitting to deliver a premium shopping experience. 

“We aim to capture 10% of the Indian footwear market,” said Hushsham.

Although the market is ripe for disruption, the journey ahead is challenging. In a country where incumbents have substantial brand equity and new-age D2C brands vie for a lucrative market, Yoho must balance quality and innovation with the price factor and the complexities of scaling up. That is the winning combination for young disruptors in the traditional footwear space.