Virat Kohli‘s fashion brand WROGN has secured around INR 75 crore in investment from Aditya Birla Digital Fashion Ventures Ltd (ABDFVL).
Aditya Birla Digital Fashion stake rises to 32.84% in D2C
With this investment, ABDFVL’s stake in the D2C fashion brand has risen from 17.10% to 32.84%. In an exchange filing, Aditya Birla Fashion and Retail mentioned, “ABDFVL, a wholly owned subsidiary of the Company, has infused ~ INR 75 Cr of the final remaining portion of the stated primary investments into Wrogn, thereby increasing its shareholding in WROGN, from existing 17.10% to 32.84% on a fully diluted basis.”
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It mentioned that this funding continues their previous investment in the startup, which depended on “certain milestone-based valuations”. In June, Aditya Birla Group’s fashion and lifestyle unit, TMRW, acquired a 16% stake in Universal Sportsbiz, WROGN’s parent company, for INR 125 crore in cash. They mentioned that this minority investment includes an option to acquire a majority stake in the future.
Meanwhile, the latest investment was probably from TMRW, the conglomerate’s arm for fashion and lifestyle. According to the filing, the digital fashion firm now has 12,225 compulsory convertible preference shares that work out to be around 32.84% of the WROGN stake. With this investment, ABDFVL will expand its portfolio of digital-first brands.
WROGN aims for sale of INR 1500 in next 5 years
Established in 2014 by siblings Anjana Reddy and Vikram Reddy is a D2C men’s fashion brand that offers a variety of casual wear, footwear, and accessories.
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Operating revenue of WROGN’s parent company declined by 29% to INR 243.8 crore in FY24 against FY23 when it was INR 344.3 crore. D2C brand’s net loss, however, climbed by 28% to INR 56.8 crore in FY24 from FY23 at INR 44.3 crore. In June 2024, WROGN stated that it is aiming for sales of INR 1,500 crore over the next five years.
Furthermore, this investment aligns with Aditya Birla Group’s plan to grow its “house of brands” strategy. Since 2022, their umbrella brand TMRW has acquired majority stakes in seven D2C fashion brands for a total of INR 444 crore. These brands include The Indian Garage Co., Bewakoof, Nauti Nati, Juneberry, Urbano, Veirdo, and Nobero.
This news comes as the Indian D2C sector continues to attract investors despite the funding slowdown. In the previous month, fashion startup Theater raised $1.5 million in its pre-Series A round led by Prath Ventures.
