Men’s premium innerwear and lifestyle brand XYXX has secured Rs 30 crore ($3.6 million) in fresh funding, with Niveshaay Sambhav Fund leading the round. The investment also saw participation from Anicut Capital, DSG Consumer Fund, and Sauce Continuity Fund, reinforcing investor confidence in the fast-growing apparel brand.
Breakdown of the Investment
A regulatory filing accessed through the Registrar of Companies confirms the details of the funding. The company’s board approved a special resolution to issue 1,81,818 Series B2 CCPS at Rs 1,650 per share, totaling Rs 30 crore. The distribution of investments is as follows:
- Niveshaay Sambhav Fund: Rs 9.93 crore
- Anicut Capital: Rs 7.95 crore
- Sauce Continuity Fund: Rs 4.96 crore
- DSG Consumer Partners: Rs 1.99 crore
- Other investors: Singularity Growth, Selenium Trust, Veena Merchants, Arun Venkatachalam HUF contributed the remaining amount
This funding marks another milestone in XYXX’s expansion strategy, with a post-allotment valuation estimated at Rs 820 crore.
How XYXX Plans to Use the Funds
With fresh capital in hand, XYXX aims to strengthen its supply chain, enhance operational efficiency, and support its retail expansion. The funds will be used for:
- Capital expenditure (CapEx) and working capital needs
- Expanding offline retail presence in key cities
- Strengthening its distribution network
- Enhancing its product line across categories
The brand has been aggressively expanding its footprint, launching its first exclusive store in central Mumbai in FY23, with new outlets planned in Indore and Bangalore.
Retail Network and Market Presence
XYXX has positioned itself as a premium lifestyle brand specializing in innerwear, loungewear, and athleisure. The company claims:
- A network of 18,000+ retailers across 50 cities
- Presence across multiple online marketplaces, including its own website
- A top-three ranking among India’s innerwear brands in major e-commerce platforms
With consumer preferences shifting toward comfort-driven apparel, the demand for premium innerwear is growing, and XYXX is banking on this trend to drive its growth.
Funding History and Growth Metrics
Since its inception, XYXX has raised a total of Rs 250 crore. This includes a Rs 110 crore investment from Amazon Smbhav Venture Fund in May 2023, which was its largest funding round to date. According to TheKredible, before this round, Sauce.vc was the largest external stakeholder, followed by DSG Consumer Fund and Amazon’s venture arm.
Financially, XYXX has shown steady growth:
| Fiscal Year | Revenue (in Rs crore) | Growth (%) | Losses (in Rs crore) | Loss Reduction (%) |
|---|---|---|---|---|
| FY23 | 105 | – | 45 | – |
| FY24 | 131 | 25% | 35 | 22.2% |
Despite challenges, the brand has successfully reduced its losses while maintaining a strong revenue trajectory, a positive indicator for its investors.
Looking Ahead
With this latest funding round, XYXX is set to accelerate its expansion across India. The company is focusing on increasing its offline presence, streamlining operations, and ensuring a seamless omnichannel experience for customers. As consumer preferences evolve, XYXX is well-positioned to capitalize on the growing demand for premium men’s innerwear and lifestyle apparel.
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