Direct-to-consumer (D2C) footwear startup Yoho has successfully raised ₹27 crore in a recent funding round, spearheaded by Gulf Islamic Investments (GII), a global investment firm with over $4.5 billion in assets under management. Other notable participants in the round include Rukam Capital and angel investors such as Rajeev Misra, CEO of SoftBank Investment Advisers, Vijay Shekhar Sharma, CEO of Paytm, and Pankaj Chaddah, founder of Shyft.
Yoho plans to use the newly acquired funds to bolster its growth through various initiatives, including research and development, marketing, recruitment, and expanding its offline presence. This follows a previous funding round in October 2022, where the company secured ₹20 crore.
Founded in 2021 by Ahmad Hushsam and Prateek Singhal, the New Delhi-based company has carved out a niche by offering both casual and formal footwear options for men and women. The startup’s target demographic is primarily individuals aged 28 to 40 who value comfort and style but don’t focus solely on fashion trends. According to Singhal, Yoho continues to grow rapidly, with the company expecting to reach ₹90 crore in revenue this year, a 300% increase from the previous year.
Yoho currently derives around 80% of its revenue from online sales, with 26-27% coming directly through its website and the remainder through other e-commerce platforms. The remaining 20% of revenue comes from offline channels, which the company is actively working to expand.
The company has ambitious plans to grow its footprint by partnering with 2,000 multi-brand outlets (MBOs) across tier I and II cities in India. Additionally, Yoho aims to triple its product offerings to 300 styles by 2025, catering to the evolving preferences of its customer base.
As part of its international growth strategy, Yoho is set to expand into key global markets, including the Middle East, Africa, and the United States, by early next year.
Commenting on the investment, Mohammed Al-Hassan, cofounder and co-CEO of GII, highlighted Yoho’s ability to combine biomechanical expertise with affordability, filling a crucial gap in the footwear market. Rajeev Misra of SoftBank echoed this sentiment, noting the growing demand for scientifically designed, affordable footwear that meets the needs of discerning Indian consumers.