Surat-based men’s apparel company XYXX Apparels Pvt Ltd announced on Thursday that it has raised Rs 90 crore (about $11.5 million) in a Series B fundraising round headed by Singularity Growth Opportunities Fund. Trifecta Capital also contributed Rs 15 crore in venture loans to the round. Sauce Venture Capital and DSG Consumer Partners, both existing investors, also contributed to the financing. YashKela, Founder of Singularity Growth Opportunities Fund, joined the board of directors of XYXX as part of this round. XYXX, founded in 2016 by Yogesh Kabra and Siddhartha Gondal, specialises in men’s underwear, loungewear, and activewear produced from naturally sourced textiles. The firm currently has 14,000 locations across India and claims to have seen a 300% increase in sales last year compared to pre-Covid levels.
In an interview with VCCircle, Kabra stated that the plan is to continue expanding distribution, with the goal of reaching 25,000 retailers in the next six months. We also expect to generate Rs 300 crore in revenue over the next 12 months. “Throughout our rapid expansion, XYXX has been built on strong business principles and a single-minded concentration on the bottom line.” We have routinely checked and outperformed parameters such as burn rate, capital efficiency, and gross margins, to name a few. “We have already achieved profitability at the contribution margin 2 level, and we have been targeting a double-digit margin for the previous two quarters,” he continued.
“The men’s innerwear and comfort-wear sector in India has a $3 billion opportunity in the mid- to high-end market.” However, the top incumbents have shown little innovation in fabric, cuts, or designs during the last decade or so. Today’s millennial buyers prefer more comfortable and natural textiles and are eager to try out new designs and products,” said YashKela, Founder of Singularity Growth Opportunities Fund, in a statement.
Singularity AMC, founded by Kela in 2021, is a multi-product asset management business with the goal of delivering differentiated investment possibilities to major investors in private equity (growth and late stage) in India. WebEngage, a user engagement software-as-a-service (SaaS) firm run by Webklipper Technologies Pvt. Ltd, secured $20 million earlier this month, led by Singularity Growth Opportunities Fund and SWC Global.