Direct-to-consumer (D2C) footwear startup Yoho has raised Rs 27 crore in a funding round led by Gulf Islamic Investments (GII), a global alternative investment firm, with more than $4.5 billion of assets under management.
The round also saw participation from Rukam Capital and angel investors like SoftBank Investment Advisers chief executive officer Rajeev Misra, Paytm CEO Vijay Shekhar Sharma and Shyft founder Pankaj Chaddah.
The funds will be used to support growth initiatives, research and development, marketing efforts, recruitment, and offline expansion. It last raised Rs 20 crore in October 2022.
“Our core target audience is 28 to 40 years old, who like colour and style, value comfort, and don’t just go for fashion,” cofounder Prateek Singhal told ET.
Founded in 2021 by Ahmad Hushsam and Singhal, the New Delhi-based startup offers a diverse range of products, including casual wear and formal shoes for both men and women.
Yoho competes with footwear startups such as Fireside Ventures-backed Solethreads and Neeman’s.
The company aims to enhance its offline presence across India, targeting partnerships with 2,000 multi-brand outlets (MBOs) in tier I and tier II cities. Additionally, it plans to expand its product catalogue threefold to 300 styles by 2025.
“Year-on-year, we are growing at almost 300%, and this year, we are aiming to close at an overall revenue of around 90 crores,” Singhal said. “The shoe segment has grown by almost 400%, and the slipper segment has grown by around 180%, which is driving most of the growth.”
Yoho gets about 80% of its revenue from online channels, with 26-27% from its own website and the rest from other marketplaces. The remaining 20% comes from offline sales.
The startup plans to expand into international markets including the Middle East, Africa, and the US by early next year.
Commenting on the investment, Mohammed Al-Hassan, cofounder and co-CEO of GII said, “GII provides innovative growth funding solutions that address evolving consumer preferences. Yoho’s approach of combining biomechanical expertise with affordability targets a critical gap in the market that GII’s investment can address.”
“We see a significant void in the consumer market for scientifically designed, affordable footwear that caters to the discerning Indian consumer. Yoho’s innovative approach, which combines biomechanical expertise with accessibility, is precisely positioned to fill this gap,” said Misra at SoftBank.
