India’s innerwear market is highly competitive. Big legacy brands dominate retail shelves. At the same time, many new D2C brands are fighting for attention online.
Yet XYXX Apparels has grown steadily.
In FY25:
- Revenue reached ₹191.8 crore
- Revenue grew 46 percent year-on-year
- Losses reduced by 28 percent
- Unit economics improved
This case study explains how the brand started, the challenges it faced, how it raised funding, and how it is moving toward profitability.
XYXX was founded in 2017 by Yogesh Kabra and Siddhartha Gondal.
The idea was simple.
Indian men were upgrading their lifestyle. They were spending more on shoes, grooming and gadgets. But innerwear was still basic and often uncomfortable.
The founders saw a gap in the market:
- Comfortable fabrics
- Modern designs
- Premium feel
- Affordable pricing
Instead of competing only on low prices, XYXX focused on comfort and quality.
That positioning helped them stand out.
Founders Background
Yogesh Kabra comes from a textile and manufacturing background. This gave the company strong knowledge of fabrics and production.
Siddhartha Gondal focused on operations and business growth.
This combination helped XYXX build both a strong product and a scalable business model.
Early Challenges
Like any apparel startup, XYXX faced serious challenges.
1. Strong Competition
The innerwear market already had well-known legacy brands with strong distribution networks.
2. Customer Switching
Men usually stick to one innerwear brand. Changing habits takes time.
3. Rising Marketing Costs
Online advertising costs were increasing. Acquiring new customers was not cheap.
4. Inventory Risk
Apparel businesses require inventory planning. Overstocking or slow-moving products can hurt cash flow.
Despite these challenges, XYXX continued to focus on product quality and brand building.
Financial Performance in FY25
Let us look at the numbers.
Revenue
FY25 Revenue: ₹191.8 crore
- FY24 Revenue: ₹131.5 crore
- Growth: 46 percent
Revenue breakdown in FY25:
- ₹187.2 crore from operations
- ₹4.6 crore from other income
Most of the revenue comes from core business operations, which is a positive sign.
Expenses
- Cost of goods sold: ₹100 crore
- Marketing spend: ₹50.5 crore
- Employee expenses: ₹26 crore
- Total expenses: ₹217.3 crore
Revenue grew faster than total expenses. That shows better cost control.
Profit and Loss
- FY24 loss: ₹35.5 crore
- FY25 loss: ₹25.6 crore
- Loss reduced by 28 percent
The company is still in loss, but the losses are shrinking. This shows improving efficiency.
Unit Economics Improvement of XYXX Apparels
In FY24, XYXX spent ₹1.30 to earn ₹1.
In FY25, it spent ₹1.16 to earn ₹1.
This improvement shows:
- Better marketing returns
- Better inventory management
- Better operational efficiency
This is one of the most important signals for long-term success.
Funding and Investors
XYXX has raised funds from well-known investors over the years.
Funding rounds include:
- ₹6 crore seed round from Sauce.vc in 2019
- ₹90 crore in 2022 led by Singularity Opportunities Growth Fund
- ₹110 crore in 2023 led by Amazon Smbhav Venture Fund
- ₹30 crore in March 2025 led by Niveshaay Sambhav Fund
In 2022, Indian cricketer KL Rahul joined as brand ambassador and investor.
Investor backing gave the company capital to scale operations, marketing and product expansion.
Marketing Strategy
XYXX follows a balanced marketing strategy.
Celebrity Association
KL Rahul helped improve brand visibility and aspirational value.
Digital Marketing
The company invests in performance marketing and marketplaces.
Product Expansion
It expanded from innerwear to loungewear and athleisure to increase average order value.
Hybrid Distribution
The brand sells through:
- Its own website
- Online marketplaces
- Offline retail channels
This reduces dependency on a single platform.
Assets and Liabilities
Key Assets
- Strong brand positioning
- Institutional investor support
- Expanding product categories
- Improving unit economics
- Celebrity association
Key Risks or Liabilities
- High competition in apparel
- Dependence on marketing spend
- Working capital requirements
Like any growing brand, risk exists. But financial trends are improving.
Is XYXX Moving Toward Profitability?
Based on available data:
- Revenue is growing fast
- Losses are reducing
- Spending efficiency is improving
If this trend continues, profitability becomes realistic in the coming years.
The company is scaling with control, not just chasing revenue headlines.
Final Thoughts
XYXX Apparels is building a modern Indian lifestyle brand with discipline.
It focused on:
- Product quality
- Brand positioning
- Financial improvement
- Long-term sustainability
Many D2C brands grow fast and struggle later. XYXX is trying to balance growth with efficiency.
That makes it a brand worth watching.
