TechnoSport raises Rs 175 crore from A91 partners

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TechnoSport, a homegrown activewear brand, said it has raised Rs 175 crore from A91 Partners, in its first-ever external fundraise. The total capital was transferred in two tranches of Rs 90 crore and Rs 70 crore each. The remaining Rs 15 crore was in the form of secondaries where some of the company’s early investors sold shares and took an exit, Moneycontrol has learnt.

The company will use the fresh funds to expand operations, focus on digital brand building and enhance capacity at its mega factories, the company’s co-founders told Moneycontrol. It will also spend on marketing activities and expand its sales and distribution channels to reach a wider user base.

The company is present in 15 states and sells at over 5,000 retailer touchpoints.

This is yet another instance where investors are betting on offline businesses that are also looking to build a digital presence, following an omnichannel approach. Former Puma executives also raised a total of Rs 530 crore across two rounds (Rs 430 crore and Rs 100). In a report released earlier, investors said even as digital-first brands prop up, 90 percent of the deliveries will be done offline.

The India sports apparel market was valued at $673.34 million in 2022 and is expected to reach $1.9 billion by 2029, growing at a CAGR of 16.2 percent between 2023 and 2029, the company said.

"This infusion of funding will serve as a catalyst, empowering us to bolster our manufacturing infrastructure and amplify our digital brand presence. With this support, we are poised to extend our reach across borders, strengthening India's imprint on the global map and inspiring countless individuals worldwide to embrace an active lifestyle," said Sunil Jhunjhunwala, co-Founder and managing director at TechnoSport.

As per Abhay Pandey, General Partner at A91 partners, “Technosport has demonstrated that high-quality activewear can be made in India and they are on a path to democratise access to the category. This investment represents our confidence in their ability to disrupt and significantly expand the activewear market and create meaningful impact."