Surat-based, XYXX Apparels Pvt. Ltd., a premium men’s innerwear brand has raised an amount of Rs 6 crore from an early-stage consumer-focused venture capital fund, Sauce.vc in its seed round of funding. XYXX plans to use the capital raised to aggressively expand its sales and marketing efforts. In addition, they will also be focusing on broadening and accelerating product development.
Founded by Yogesh Kabra, XYXX is a new-age, premium category of comfortable innerwear at accessible price points that is young, edgy and irreverent with an independent streak. The brand offers a varied range of products – trunks, briefs, boxers, jockstraps, vests, pyjamas and t-shirts for men. XYXX offers the best value for money proposition at a price point that has a large market at play. The brand is establishing its presence in most important distributor led multi-brand outlets and large format stores like Central, India. It is also present on leading online marketplaces and also has its own website. Their retail presence is rapidly expanding in India, namely Rajasthan, Gujarat, Maharashtra, Madhya Pradesh, Goa, Chhattisgarh, Punjab and Delhi.
XYXX has also invested in getting SAP implemented and taken the help of a leading big four to streamline their processes. In addition, they have recently shifted headquarters to Mumbai while keeping Surat as their production hub. This has allowed them to onboard top talent like Govind Shrikhande, ex-MD of Shoppers Stop, thus enabling them to build a strong marketing team – both for the brand as well as for performance.
Yogesh Kabra, Founder of XYXX Apparels Pvt.Ltd. said, “XYXX is really excited about the belief our investors have placed in our mission to expand and provide fun and comfort to customers across India. 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.”
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. This goes to show that a high-quality product at the right price point will always create repeats that eventually build sustainable and scalable brands. 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. We are very excited about the continued success of our first portfolio company in the fund.”