WROGN, the popular men’s apparel brand, has successfully raised approximately $9 million (around Rs 75 crore) from Aditya Birla Digital Fashion Ventures Ltd (ABDFVL). This investment marks a significant increase in ABDFVL’s stake in the direct-to-consumer (D2C) fashion brand, elevating it from 17.10% to 32.84% on a fully diluted basis, as disclosed in a recent stock exchange filing.
Previous Funding and Growth Trajectory
Earlier this year, in June, WROGN had already secured Rs 125 crore (about $15 million) from TMRW House of Brands, another entity under the Aditya Birla Group. This earlier investment allowed TMRW to acquire a 16% stake in WROGN, valuing the Bengaluru-based brand at approximately $105 million.
- Key Funding Milestones:
- June 2024: Rs 125 crore from TMRW House of Brands
- October 2024: Rs 75 crore from Aditya Birla Digital Fashion Ventures
Aditya Birla Group’s TMRW has been actively investing in the Indian fashion landscape, backing eight brands, including The Indian Garage Co, Bewakoof, and Nobero. This strategic investment approach highlights the group’s commitment to expanding its footprint in the fashion sector.
Brand Evolution and Market Presence
Founded in 2014 by siblings Anjana and Vikram Reddy, WROGN has carved a niche in the casual wear segment. The brand offers a diverse range of apparel, footwear, and accessories, leveraging the popularity of cricketer Virat Kohli to enhance its market presence.
WROGN has expanded its reach through exclusive brand outlets and partnerships with major e-commerce platforms. The brand’s innovative marketing strategies and collaborations have played a crucial role in its growth trajectory.
Notable Investors and Financial Landscape
Since its inception, WROGN has raised approximately $90 million from various investors, including Accel, Flipkart, and sports icons like Virat Kohli and Sachin Tendulkar. In November 2020, Flipkart also participated in WROGN’s Series F funding round, although the amount remains undisclosed.
Interestingly, Flipkart is also an investor in HRX, a competing brand founded by Hrithik Roshan, showcasing the competitive landscape in the Indian fashion market.
Financial Challenges Amidst Growth
Despite its growth and expansion, WROGN has faced financial challenges recently. The brand reported a 29.2% drop in revenue from operations, totaling Rs 243.75 crore in FY24, down from Rs 344.3 crore in FY23.
Moreover, WROGN’s losses increased by 28.2%, reaching Rs 56.76 crore compared to Rs 44.26 crore in the previous fiscal year. These losses are primarily attributed to a significant decline in sales, prompting the brand to implement cost-cutting measures to stabilize its financial health.
Market Insights
According to a recent report by TMRW X Bain & Company, the fashion and lifestyle sector is the second-largest consumer category in India, valued at $110 billion. Online sales account for approximately $11 billion, or 10% of the market, indicating a growing trend towards digital shopping in the fashion industry.
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