Yoho, a direct-to-consumer (D2C) footwear brand, has raised ₹27 crore in a pre-Series B funding round led by Gulf Islamic Investments (GII). Gulf Islamic Investments is a Shari’ah-compliant global alternative investment company, with over $4.5 billion of assets under management.
The round also saw participation from Rukam Capital and notable angel investors such as Rajeev Misra (CEO, SoftBank Investment Advisers), Vijay Shekhar Sharma (CEO, Paytm) and Pankaj Chaddah (Founder, Shyft).
The newly raised capital will be used as growth capital to power Yoho’s domestic and International expansion.
The funds will be used strategically to drive its growth and innovation, including investment in research and development to bring more groundbreaking products to market and build on the success of Yoho innovations such as Blinc (India’s first hands-free sneaker).
The company outlined an ambitious expansion strategy to solidify its domestic market position and to reach new customers. Notably, it seeks to boost its offline presence across India, targeting partnerships with 2,000 Multi-Brand Outlets (MBOs) in Tier 1 and Tier 2 cities. The launch of Exclusive Brand Outlets (EBOs) will offer an enhanced customer experience through the innovative use of technology, including using AI to address common fitting issues, reducing returns and optimising inventory management.
It also plans to create stronger brand awareness through marketing initiatives and community-building efforts and increase its product catalogue from 100 to 300 styles by 2025.
Fuelled by strong investor backing and in collaboration with Vikas Kochhar & Associates as the transaction advisor, the company’s growth vision also extends beyond Indian borders, with plans to expand into international markets including the Middle East, Africa, and the United States. This global expansion will leverage its online and offline channels, aiming to replicate Yoho’s domestic success on an international scale.
Speaking on the company’s journey and recent funding, Ahmad Hushsam and Prateek Singhal, co-founders of Yoho, said, “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. 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.”
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.”
Rajeev Misra, CEO, SoftBank Investment Advisers, said, “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. This alignment of cutting-edge design and affordability exemplifies the disruptive strategies that can capture substantial market share in India’s rapidly evolving economy.”
Speaking on their investment in Yoho, Archana Jahagirdar, Founder and Managing Partner, Rukam Capital said, “Footwear is one of the most exciting categories in the consumer segment. We have been early backers of a stellar founding team because we believe that to build a meaningful large company in this space, you need entrepreneurs with experience and knowledge, which these founders bring to table in ample measure. We are excited to continue this journey with Prateek and Ahmad.”
Founded in 2021 and based in New Delhi, Yoho offers a diverse range of footwear, including casual and formal styles for both men and women.
In 2022, Yoho raised ₹20 crore in Series A funding round led by Rajeev Mishra, CEO Softbank Vision Fund, Rukam Capital, and Paytm founder, Vijay Shekhar Sharma along with participation from other investors.
