PC: Retails Updates
Aditya Birla Digital Fashion Ventures Ltd (ABDFVL) raised its stake in direct-to-consumer fashion brand WROGN by 15.74% by way of a fresh investment of around Rs 75 crore, or nearly $9 million, it said in a filing with the stock exchange.
WROGN, last June, had also raised Rs 125 crore (~ $15 million) from TMRW House of Brands, part of the Aditya Birla Group. In that round of funding, TMRW had picked up a 16 percent stake in WROGN, valuing the Bengaluru-based brand at nearly $105 million.
TMRW, part of Aditya Birla Group, has continued to strengthen its presence in Indian eight fashion brands-the Indian Garage Co, Bewakoof, Nobero, Nauti Nati, Urbano, JuneBerry, and Veirdo.
Having been founded in 2014 by siblings Anjana and Vikram Reddy, WROGN is one of the emerging casual-wear brands today. The brand offers a variegated array of apparel, footwear, and accessories. The on-field star power of cricketer Virat Kohli was seen to be used by the brand in order to increase its reach, for it has spread through exclusive brand outlets and partnerships with major e-commerce platforms.
WROGN has, since inception, raised $90 million worth of investments from Accel, Flipkart, Virat Kohli, and Sachin Tendulkar. Of note, in a development milestone back in November 2020, Flipkart invested an unknown amount in the WROGN Series F round. Its stake in Hrithik Roshan’s HRX it does have, however, is a direct competitor to WROGN.
Its strategic maneuvers notwithstanding, WROGN witnessed a 29.2% slip in revenues from operations, at Rs 243.75 crore for FY24, from Rs 344.3 crore in FY23. Losses during FY24 rose to Rs 56.76 crore, up by 28.2% against Rs 44.26 crore in the previous fiscal, primarily because of the huge drop in sales.
A recent report by TMRW X Bain & Company suggests that the fashion and lifestyle sector in India is the second-largest consumer category, valued at $110 billion. Of this market share, online sales is estimated to account for about 10%, with sales at $11 billion.
In summation, the last funding round for WROGN draws lines of its growth trajectory and strategic alliances in the very competitive fashion field. Further development of WROGN is ensured with a responsive market presence for uninterrupted market continuity and ongoing investor support to face challenges and pursue opportunities in this highly agile industry. WROGN in terms of strategic collaborations and market positioning is indicating strength and growth potential within the fashion industry.
