In a significant move that underscores the evolving strategy for direct-to-consumer brands in India, Delhi-based footwear company Yoho has successfully raised Rs 23 crore in a fresh funding round. The capital infusion is a calculated blend of equity and debt, structured to fuel an ambitious offline expansion and a deeper push into the performance footwear category. This transaction is not just about capital, it is a strategic endorsement from some of the most influential names in the investment world, signaling a new phase of growth for a brand that has rapidly carved out a niche in the country’s competitive footwear market.
For D2C brands born on the internet, the path to true scale in India inevitably leads to physical retail. While digital channels offer unparalleled reach and customer data, the tactile nature of products like footwear demands an offline presence. Yoho’s latest fundraise is a clear acknowledgment of this reality. The capital is the war chest it needs to transition from a digital-first darling to a true omnichannel force, meeting customers where they are, from metro city high streets to Tier II town marketplaces.
From Digital Shelf to Main Street
Founded in 2021 by Ahmad Hushsham and Prateek Singhal, Yoho emerged with a straightforward but powerful value proposition: to create exceptionally comfortable and stylish footwear for the modern Indian consumer. The founders identified a gap between expensive international brands and the largely unorganized domestic market, a space ripe for a brand that could deliver on quality, comfort science, and accessible pricing.
The company’s trajectory has been impressive. By leveraging a sharp digital marketing strategy, Yoho quickly established its presence across its own website and major e-commerce platforms, including Amazon, Myntra, Flipkart, Ajio, and Nykaa. In a testament to its operational agility and understanding of modern consumer habits, the brand also secured listings on quick commerce platforms like Blinkit, Zepto, and Swiggy Instamart, making its products available in minutes.
This digital-native approach has paid dividends. To date, Yoho claims to have sold over three million pairs of footwear, a milestone that demonstrates strong product-market fit and an ability to scale its supply chain and fulfillment operations effectively. This traction laid the groundwork for the current funding, proving to investors that the core business model is sound and ready for its next evolutionary step.
The Anatomy of the Deal
The Rs 23 crore round is strategically structured, comprising Rs 15 crore in equity for long-term growth initiatives and Rs 8 crore in debt, likely earmarked for working capital needs such as inventory financing for its retail expansion. This dual-tranche structure signals a mature approach to capitalization, using non-dilutive capital where appropriate to preserve equity for its founders and existing shareholders.
The round was led by a powerful consortium of new and existing investors. Gulf Islamic Investments (GII), a prominent global investment firm, co-led the round, marking its continued confidence after leading the company’s Rs 27 crore pre-Series B round in October 2024. This follow-on investment from a lead institutional backer is a strong vote of confidence in the management team’s execution.
Co-leading the investment is Rajeev Misra, the former chief executive of SoftBank Vision Fund. Misra’s involvement, both in this and previous rounds, brings not just capital but also immense strategic value and a global network. His continued participation is a significant endorsement of Yoho’s long-term vision. The round also saw participation from Vijay Shekhar Sharma, the founder of Paytm, another titan of the Indian startup ecosystem whose continued support adds further validation. The commitment from these seasoned investors suggests a shared belief that Yoho has the potential to become a category-defining brand.
Deploying Capital for Omnichannel Dominance
The company has outlined a clear and focused strategy for the deployment of these new funds. The capital is not for speculative ventures but for a deliberate, two-pronged attack on market share.
First and foremost is the aggressive push into offline retail. Yoho is targeting partnerships with 2,500 Multi-Brand Outlets (MBOs) across Tier I and Tier II cities. This move will dramatically increase the brand’s physical availability, placing its products in front of millions of consumers who still prefer to touch, feel, and try on footwear before making a purchase. This is the crucial “clicks-to-bricks” pivot that many successful D2C brands must execute to achieve mainstream scale.
Beyond MBOs, Yoho plans to launch its own Exclusive Brand Outlets (EBOs). Critically, these will not be traditional stores. The company intends to integrate AI-driven solutions to address one of the biggest pain points in footwear retail: finding the perfect fit. This technology aims to reduce product returns, a major cost center for apparel and footwear brands, and optimize inventory management by better predicting local demand. This tech-forward approach to physical retail could become a key differentiator.
The second major use of funds will be to scale its performance running range. This marks a strategic product line extension from casual and comfort wear into a more technical and higher-margin category. The performance running market is dominated by global giants, but there is a growing appetite for high-quality, well-priced alternatives. By investing in research, development, and marketing for this range, Yoho is positioning itself to compete for a more discerning and loyal customer segment.
Navigating a $6 Billion Opportunity
The Indian footwear market, particularly the sneaker segment, is on a steep growth curve. Market estimates project the sneaker market alone to reach $6 billion by FY32. This growth is fueled by rising disposable incomes, increasing health and fitness consciousness, and the casualization of fashion.
Yoho is positioning itself smartly within this landscape. It competes with other homegrown D2C brands like Neeman’s while also presenting an alternative to the entry-level offerings of global players like Puma, Adidas, and Nike. Its core strength lies in its focus on comfort technology and its ability to maintain an accessible price point without compromising on design or quality. The move into offline retail and performance wear is a direct challenge to incumbents, leveraging its D2C-honed brand equity to capture a wider audience.
What’s Next for Yoho
With fresh capital in the bank and a clear roadmap, the next 18 to 24 months will be a period of intense execution for Ahmad Hushsham and Prateek Singhal. The primary focus will be on rolling out their offline network, forging partnerships with MBOs, and launching their first tech-enabled EBOs. Success will be measured by how quickly and efficiently they can translate their online brand appeal into offline sales velocity.
Simultaneously, the launch and scaling of the performance running line will be a key test. Establishing credibility in a technical product category requires not just a great product but also savvy marketing and community-building efforts. If successful, it could significantly elevate the brand’s perception and unlock higher price points.
This funding round is more than just a financial transaction. It is the starting gun for Yoho’s next major race: the race to build an enduring, omnichannel footwear brand that can stand shoulder-to-shoulder with the biggest names in the industry. The backers have placed their bets, the strategy is set, and the market is watching closely.
