Summary:

  • Founded in 2014 by siblings Anjana and Vikram Reddy, WROGN has established itself as a leading casualwear brand in India.

  • This round was led by Aditya Birla Digital Fashion Ventures Ltd (ABDFVL).

  • This funding round significantly boosted ABDFVL’s stake in the direct-to-consumer (D2C) fashion brand from 17.10% to 32.84%, as reported in a stock exchange filing

WROGN, the popular men’s casualwear brand, recently secured a fresh infusion of approximately Rs 75 crore ($9 million) from Aditya Birla Digital Fashion Ventures Ltd (ABDFVL). This funding round significantly boosted ABDFVL’s stake in the direct-to-consumer (D2C) fashion brand from 17.10% to 32.84%, as reported in a stock exchange filing. The investment highlights the growing interest of large corporate players in expanding their footprint within India’s flourishing fashion industry.

This is not WROGN’s first encounter with the Aditya Birla Group’s investment arm. Just a few months prior, in June, WROGN raised Rs 125 crore ($15 million) from TMRW House of Brands, another Aditya Birla Group subsidiary. This deal granted TMRW a 16% stake in WROGN, valuing the Bengaluru-headquartered brand at approximately $105 million at the time. The cumulative backing from both ABDFVL and TMRW not only cements WROGN’s place as a leader in the Indian fashion sector but also reflects the Aditya Birla Group’s commitment to building a robust portfolio of fashion brands.

TMRW, part of the Aditya Birla Group, has been actively investing in Indian fashion labels. It has now supported eight brands, adding diversity to its portfolio. Some of its notable investments include men’s casualwear label The Indian Garage Co, the quirky casualwear brand Bewakoof, the athleisure brand Nobero, children’s clothing line Nauti Nati, denim label Urbano, and casualwear brands JuneBerry and Veirdo.

With these investments, TMRW has emerged as a prominent player in India’s fashion industry, tapping into both established names and emerging players alike.
Founded in 2014 by siblings Anjana and Vikram Reddy, WROGN quickly established itself as a leading casualwear brand in India, known for its edgy designs, bold aesthetics, and youth-centric appeal. A key element of the brand’s success has been its association with renowned cricketer Virat Kohli, who has been the face of WROGN since its inception. Kohli’s influence, along with strategic partnerships with leading e-commerce platforms and the brand’s exclusive retail outlets, has enabled WROGN to scale rapidly across the country.

Over the years, WROGN has attracted significant investor interest, raising approximately $90 million. In addition to backing from the Aditya Birla Group, the brand has seen investments from notable firms like Accel, Flipkart, and even cricket icons like Virat Kohli and Sachin Tendulkar. In 2020, Flipkart, India’s largest e-commerce platform, further reinforced its belief in WROGN by participating in its Series F funding round. This was a strategic move for Flipkart, which is also an investor in another high-profile celebrity brand, Hrithik Roshan’s HRX, a competitor in the same space.

Despite its strong market positioning and brand recognition, WROGN has faced financial challenges recently. The brand’s revenue from operations dropped by 29.2% in FY24, falling to Rs 243.75 crore, compared to Rs 344.3 crore in FY23. This decline in revenue has come despite cost-cutting measures, and it has resulted in a significant increase in losses. The brand’s losses widened by 28.2%, reaching Rs 56.76 crore in FY24, up from Rs 44.26 crore in FY23. The downturn is largely attributed to a sharp decline in sales, indicating that WROGN, like many others in the apparel sector, is facing headwinds in the current economic climate.

The broader fashion and lifestyle industry in India, however, continues to grow. According to a report by TMRW in collaboration with Bain & Company, the fashion and lifestyle sector is India’s second-largest consumer category, valued at around $110 billion. While traditional retail still dominates, online sales are making substantial inroads, accounting for about $11 billion or 10% of the total market. This growing shift toward online shopping is a trend that brands like WROGN are well-positioned to capitalize on, particularly given their strong digital presence and partnerships with major e-commerce platforms.

In conclusion, WROGN’s ability to attract significant investments from major players like Aditya Birla Group underscores its strong brand value in the Indian fashion space. However, the road ahead is not without challenges, as the brand seeks to overcome financial pressures while continuing to scale in an evolving market. With its innovative approach to fashion and strategic backing, WROGN remains a key player to watch in India’s rapidly expanding D2C fashion landscape.