Yogesh Kabra: Spotting the X-Factor in India’s Innerwear Market

Meet Yogesh Kabra, the enterprising entrepreneur who embarked on a journey to revolutionize India’s innerwear industry by spotting the “X-factor” that sets his brand apart. With a vision to offer men a premium and unique innerwear experience, Yogesh Kabra introduced XYXX, a brand that has quickly made a mark in the crowded innerwear market. In 2015, Yogesh Kabra was at a crossroads. Having completed his MBA in the US and gained experience working with Techstars, one of the world’s largest start-up incubators, he decided to return to India. While it was a natural choice to join his family’s business of trading in woven fabric, Kabra had a different vision. He was passionate about creating a venture in the men’s premium innerwear segment.

During his time in the US, Kabra had observed global innerwear brands like Calvin Klein, Hanes, and Mack Weldon, each offering a distinct identity and quality. However, when he returned to India and surveyed the premium innerwear market, he found a sea of similarity. Most brands lacked differentiation in terms of style, colour, and positioning, with only Jockey standing out as an original brand. Kabra was puzzled by the homogeneity in the market. He questioned, “Why should undies look and feel the same?” He also pondered whether these offerings genuinely catered to the desires and needs of Indian consumers. Despite encountering scepticism from a potential mentor who challenged the viability of his venture, Kabra decided to take the plunge.

Yogesh Kabra’s decision to start XYXX in December 2017 seems to be paying off. The brand’s operating revenue has witnessed a steady climb, growing from ₹6 crore in FY19 to ₹105 crore estimated for FY22. Although the start-up has posted losses, Kabra emphasizes that maintaining a prudent approach is essential. The bottom line has been kept under control, with losses decreasing from ₹5.26 crore in FY20 to ₹4.5 crore in FY21. XYXX’s success can be attributed to its innovative approach driven by consumer insights. The brand introduced features such as odour cancellation, moisture-wicking, and quick-drying, challenging the industry’s status quo. Despite the unconventional focus on innerwear, word-of-mouth marketing quickly made XYXX “the talk of the town.”

XYXX has achieved a significant presence in the market, with products available in 10,000 multi-brand outlets across 70 cities. Half of the brand’s revenue comes from offline channels, while the remaining half is generated through online channels, including its website and online marketplaces. The brand has secured over ₹100 crore in funding from various venture capital funds, including Sauce.vc, DSG Consumer Partners, and Synergy Capital. Hariharan Premkumar, head of India at DSG Consumer Partners, highlights the company’s impressive growth. He mentions that XYXX was generating around ₹2.5 crore in monthly revenue when DSG Consumer Partners came on board. The founder’s ability to establish an efficient distribution network in India was particularly impressive. Additionally, Kabra’s prudent inventory management and working capital practices provided the fund with confidence in the brand’s potential. Focus on product innovation further differentiated XYXX in a market characterized by legacy brands.

XYXX’s success can be attributed to its timing, catching the wave of changing consumer preferences. Millennials and Gen Z, who were tired of traditional brands, were ready for something new and exciting. Innerwear was no longer a hidden product, and the era of monotonous colours and styles was over. The younger generation sought variety, style, and a dash of quirkiness in their innerwear. Kabra’s decision to name the brand XYXX was a strategic one, representing the genetic difference between men (XY) and women (XX). The unique name and the compelling product have been central to the brand’s success.

Despite the initial success, XYXX faces the challenge of effectively communicating the functional superiority of its products. Kabra acknowledges that his conservative approach, influenced by his family’s business background, has sometimes hindered more aggressive marketing efforts. The funds raised so far remain largely untouched, and Kabra recognizes the potential for growth by investing more in marketing and advertising.

As Yogesh Kabra continues to push the boundaries of the innerwear market with XYXX, it’s clear that his keen eye for spotting the “X-factor” and his innovative approach to product development have set the brand on a path to reshape the innerwear industry in India.