D2C footwear brand Yoho raises Rs 27 crore in funding led by GII, angel investors

Direct-to-consumer (D2C) footwear brand Yoho has raised Rs 27 crore in a pre-Series B funding round led by Gulf Islamic Investments (GII), a global alternative investment firm that manages over $4.5 billion in assets.

This funding round also saw participation from notable investors, including Rajeev Misra (CEO of SoftBank Investment Advisers), Vijay Shekhar Sharma (CEO of Paytm), and Rukam Capital. 

The startup plans to use the raised capital for domestic and international expansion, product development, and offline expansion.

Yoho's offerings

Founded in 2021 by Ahmad Hushsam and Prateek Singhal, the Delhi-based startup offers a diverse range of footwear, including casual and formal styles for both men and women. 

Yoho sells its products on e-commerce platforms such as Amazon, Flipkart, Myntra, and Tata 1mg and through its website.

Plans for growth and innovation

Yoho aims to use the raised capital for research and development (R&D) and to enhance its product offerings. 

Additionally, the startup plans to expand its product catalogue from 100 to 300 styles by 2025. It is also exploring ways to improve customer experience by using artificial intelligence (AI) to address fitting issues, reduce returns, and optimize inventory management.

“We are thrilled to have the support of our investors, and we're excited to leverage these partnerships to drive our next phase of growth. With this capital infusion, we are well-positioned to accelerate our product development, expand our market reach, and create an even more significant impact in the lives of consumers," said the co-founders.

Strengthening offline presence and market expansion

While Yoho has a strong online presence, with 80% of its revenue coming from online sales, the brand is also targeting offline growth.

Yoho plans to partner with 2,000 Multi-Brand Outlets (MBOs) in Tier I and Tier II cities across India and launch Exclusive Brand Outlets (EBOs) to provide a unique in-store experience for customers.

Looking beyond India, Yoho aims to expand into international markets by early next year, including the Middle East, Africa, and the United States. 

"Our mission has always been to provide high-quality, comfortable footwear at accessible prices, and this investment will enable us to bring this vision to a much wider audience, both in India and globally," they said.

Investors comment

Commenting on GII’s investment in Yoho, Mohammed Al-Hassan, GII’s co-founder and co-CEO, 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.”

Pankaj Gupta, fellow GII co-founder and co-CEO, added, "Yoho's remarkable growth in a short period strongly validates its product-market fit. We take great comfort in the enterprising spirit of the Yoho co-founders Ahmad and Prateek running this business, and look forward to being part of Yoho's journey as it continues to disrupt the industry, creating meaningful impact and enhancing users’ everyday comfort. Our investment in their unique value proposition represents the kind of groundbreaking approach that we believe can reshape traditional markets and benefit consumers on a wider scale.”