GII Takes Interest in Indian Footwear Startup, Invests $32M

Direct-to-consumer (D2C) footwear startup Yoho has successfully raised Rs 27 crore in a funding round led by Gulf Islamic Investments (GII), a global alternative investment firm with over $4.5 billion in assets under management. This funding round also attracted participation from Rukam Capital and notable angel investors, including Rajeev Misra, CEO of SoftBank Investment Advisers, Vijay Shekhar Sharma, CEO of Paytm, and Pankaj Chaddah, founder of Shyft.

The raised funds will be allocated towards supporting growth initiatives, research and development, marketing efforts, recruitment, and offline expansion. Yoho previously raised Rs 20 crore in October 2022. Co-founder Prateek Singhal stated that the startup primarily targets consumers aged 28 to 40 who appreciate color and style, value comfort, and seek more than just fashion.

Founded in 2021 by Ahmad Hushsam and Singhal, the New Delhi-based startup offers a diverse range of products, including casual and formal shoes for both men and women. Yoho faces competition from other footwear startups like Solethreads, backed by Fireside Ventures and Neeman’s.

The company aims to significantly enhance its offline presence across India, with a target of establishing partnerships with 2,000 multi-brand outlets (MBOs) in tier I and tier II cities. Furthermore, Yoho plans to triple its product catalog, expanding to 300 styles by 2025. Singhal highlighted that Yoho is experiencing an impressive year-on-year growth of nearly 300%, with a revenue target of approximately Rs 90 crore for the current year. The shoe segment has seen a 400% growth, while the slipper segment has expanded by around 180%, contributing significantly to overall growth.

Currently, about 80% of Yoho's revenue comes from online channels, with 26-27% generated from its own website and the remainder from other marketplaces. The remaining 20% of revenue is derived from offline sales.