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D2C Menswear brand XYXX Apparels has raised around $11 Mn (INR 90 Cr) in a round led by Singularity Growth Opportunities Fund. The funding also includes a debt infusion of around $2 Mn (INR 15 Cr) from Trifecta Capital.

According to a company statement cited in an ET report, existing investors including Sauce Venture Capital and DSG Consumer Partners also participated in the funding round. Including the latest round of funding, XYXX has raised around $17 Mn so far.

XYXX’s last funding round came in June 2021, when it raised INR 30 Cr in its Series A round of funding. The D2C brand is also backed by Indian cricketer KL Rahul, who is also its brand ambassador since April 2022.

XYXX will be using the incoming cash to expand its geographical reach and bolster its presence in existing markets with a new range of products. Further, XYXX will deploy the incoming funds to enter into modern retail, large-format stores and exclusive brand stores.

Founded in 2017 by Yogesh Kabra, XYXX is a menswear brand which produces and sells products across multiple categories including innerwear, loungewear, comfortwear, activewear and winter wear.

The D2C brand currently sells across 14,000 multi-brand outlets across 100 cities. XYXX also has a presence across major ecommerce players such as Amazon, Myntra and Flipkart, while having its own website.

Kabra noted that XYXX has checked and excelled at metrics including burn rate, capital efficiency and gross margins. He added that the D2C brand has been on track to become operationally profitable by the end of FY23.

The D2C brand follows an omnichannel business model and has plans to scale its offline business. XYXX has plans to reach 30,000 physical touch points by February 2023, including the launch of 10 exclusive brand outlets.

“Today, millennial customers are looking for more comfortable and natural fabrics and are keen to experiment with new designs and products. We are excited to partner with Yogesh and the XYXX team,” said Yash Kela, founder of Singularity Growth Opportunities Fund.

Kela added, “Men’s innerwear and comfortwear industry in India is a $3 Bn opportunity in the mid-premium segment. But it has seen limited innovation on fabric, cuts or designs in the last decade or so from the leading incumbents.” As part of the transaction, Kela will join the board of directors of XYXX.

According to Inc42’s ‘The State of Indian Startup Ecosystem Report, 2022’, India’s total ecommerce opportunity stands to reach $400 Bn by 2025. Of the total ecommerce market opportunity, fashion and apparel is the third largest, with its market size set to reach $33 Bn by 2025, growing at a three-year CAGR of 19%.