Performance wear brand TechnoSport has raised Rs 175 crore (around $21 million) in its first external fundraising, from growth private equity firm A91 Partners.
Bengaluru-headquartered TechnoSport offers high-performance apparel at affordable prices as it aims to cater to the masses. It has a network spanning 15 states and over 5,000 active retailer touchpoints. It is aiming for further growth and market penetration.
With the fresh capital, TechnoSport plans to improve its manufacturing capabilities, focus on digital brand building and amplify its marketing activities. The funding will also support the expansion of TechnoSport’s sales and distribution channels.
"This infusion of capital marks a pivotal moment in our growth journey, enabling us to accelerate our expansion on multiple fronts. With this support, we are poised to scale our operations, enhance our product offerings, increase our user base, drive brand building and propel our digital acceleration efforts,” said Puspen Maity, chief executive officer of TechnoSport.
The sports apparel market in India was valued at $673.34 million as of 2022 and is expected to reach $1.9 billion by 2029, growing at a CAGR of 16.2%.
TechnoSport claims it has maintained an average growth rate between 30-40%. It is aiming to capture 10% of the Indian activewear market.
It posted a revenue from operations of Rs 286.4 crore in FY23, up from Rs 223.5 crore in the fiscal before, as per VCCEdge, the data intelligence arm of VCCircle. Its net profit, on the other hand, more than doubled to Rs 29.2 crore in FY23 from Rs 14 crore in the previous year.
"This infusion of funding will serve as a catalyst, empowering us to bolster our manufacturing infra and increase our digital brand presence. With this support, we are poised to extend our reach across borders, strengthening India's imprint on the global map," said Sunil Jhunjhunwala, co-founder and managing director at TechnoSport.”
Advay Capital Advisors was the financial adviser on the transaction.