Virat Kohli backed Wrogn gets ₹75 crore from Aditya Birla Ventures

Wrogn’s Fashion Story

Aditya Birla Digital Fashion Ventures Ltd, the first significant investment in India’s fashion space, has invested ₹75 crore into Wrogn, a fashionable brand founded by Indian cricket superstar Virat Kohli. ABDFVL shall now increase its stake in the brand from 17.1% to 32.84% as the company reposes faith in Wrogn, which is growing within India’s thriving fabric of the fashion market.

According to the filing on the exchange dated September 16, 2024, the investment will be completed within 30 to 90 days. The filing cites this as part of a “milestone-based” valuation process agreed upon in earlier investments. At the same time, it also reaffirms ABDFVL’s mission of strengthening its portfolio of digital-first fashion businesses.

Founded in 2012, Wrogn seemed keen on creating holes in men’s fashion. Already, the brand has created a nice niche in trying to be young and edgy. Its dynamic accessories, footwear, and clothing speak directly to India’s millennial and Gen Z customers.

However, in recent times, the brand has yet to be so lucky. Wrogn’s revenue was at ₹344 crore in fiscal 2023, but in fiscal 2024 came down to ₹243 crore. That is a decline from the ₹336 crore revenue the brand had recorded in fiscal 2022. However, the fresh investment made by ABDFVL fills one with hope about Wrogn’s long-term growth story, as the brand can bounce back and grow in the years ahead. The company recently announced raising up to ₹500 crore through non-convertible debentures to fuel growth and investments across its portfolio further.

The segment would emerge as India’s second-largest consumption category at $110 billion, with $11 billion already driven by online sales. The online fashion market is estimated to touch $35 bn in FY28 at a CAGR of 25%. It is the most significant opportunity for brands like Wrogn, especially considering the scale at which it leads in digital retailing.

Performance and Growth Aspirations Synopsis

Aditya Birla Fashion’s margins would be of the kind to gain through its private labels and a shift in portfolio toward higher-margin fashion. The company has had sequential and year-on-year sales growth for Q1 FY25 after reporting 7.2% year-on-year growth for the said period. Sales have increased from ₹3,196 crore in Q1 FY24 to the same period ₹3,428 crore, while in the same time frame, the net loss is up by ₹162 crore to ₹215 crore due to elevated cost operations and intense market competition. However, EBITDA for Aditya Birla Fashion was up 13% ₹359 crore; margins expanded to 10.5%. That tells you the firm is slowly progressing to financial health improvement.

More Significant Trends in Fashion Investment

Wrogn is not an isolated case from the fashion ecosystem brands that have been catching the eye of investors. Several fashion companies have raised high-profile investments in the last few months alone. For instance, ethnic fashion brand Fashor has managed to raise $5 million from Blume Ventures. In contrast, seed funding led by Sorin Investments at $4.25 million had gone to The Pant Project – a brand that makes custom-made trousers – in June only. A91 Partners has raised ₹500 crore investment in men’s fashion brand Rare Rabbit.