SUMMARY
- WROGN has secured Rs 75 crore in funding from Aditya Birla Digital Fashion Ventures Ltd.
- ABDFVL has increased its ownership in WROGN to 32.84% from its previous 17.10%.
- ABDFVL has invested Rs 75 crore of the remaining funds of the primary investments into Wrogn.
Fashion brand WROGN has secured Rs 75 crore in funding from Aditya Birla Digital Fashion Ventures Ltd (ABDFVL).
As a result of this funding, ABDFVL has increased its ownership in the Virat Kohli-backed fashion brand to 32.84% from its previous 17.10%.
Aditya Birla Fashion and Retail has stated in a filing that ABDFVL has invested Rs 75 crore of the remaining funds of the primary investments into Wrogn, increasing its ownership in the brand from 17.10% to 32.84% on a fully diluted basis.
It has also mentioned that this investment is part of its commitment to the startup, which was contingent on achieving certain milestone-based valuations.
In June, the Aditya Birla Group’s fashion and lifestyle division, TMRW, acquired a 16% stake in Universal Sportsbiz, the parent company of WROGN, for Rs 125 crore in a cash deal. The conglomerate had mentioned that this minority investment came with the option to acquire a majority stake in the company later on.
Therefore, it is likely that the latest investment was made by the Aditya Birla Group’s fashion and lifestyle division, TMRW.
According to the filing, the digital fashion venture will now hold 12,225 compulsory convertible preference shares (CCPS), representing 32.84% of WROGN’s shares. This investment will allow ABDFVL to expand its collection of digital-first brands.
WROGN, established in 2014 by siblings Anjana Reddy and Vikram Reddy, is a D2C omnichannel brand that offers a variety of selection of casual wear, footwear, and accessories for men.
The parent company of WROGN saw its operating revenue drop by 29% to Rs 243.8 crore in FY24 from Rs 344.3 crore in FY23. The D2C brand experienced a 28% increase in net loss to Rs 56.8 crore from Rs 44.3 crore in the same period.
In June 2024, WROGN announced its ambition to achieve sales of Rs 1,500 crore over the next five years.
This investment aligns with the Aditya Birla Group’s strategy to grow its “house of brands” approach. Since its inception in 2022, TMRW has owned majority stakes in seven D2C fashion brands, investing a total of Rs 444 crore, including brands such as The Indian Garage Co., Bewakoof, Nauti Nati, Juneberry, Urbano, Veirdo, and Nobero.
This development comes at a time when the Indian D2C market is attracting significant interest from investors, despite the current funding slowdown. Last month, fashion startup Theater secured $1.5 million in its pre-Series A round led by Prath Ventures.
In August, the women’s fashion and apparel brand FASHOR bagged a $5 million funding from Blume Ventures. Earlier in July, GenZ-focused fashion startup Newme secured $18 million in its Series A round led by venture capital firm Accel.
