DaMENSCH Raises Capital to Strengthen D2C Men’s Apparel Market Position

DaMENSCH has successfully obtained new funding from A91 Partners and Tancom Electronics. Despite this latest capital injection, the company’s valuation remains unchanged. This flat pricing occurs as the direct-to-consumer men’s apparel sector becomes more competitive, pressing brands to transform topline growth into actual profitability.

In May 2024, DaMENSCH raised Rs 21.62 crore (about $2.5 million) during its extended Series B round from existing backers. The board has authorised the issuance of 887 compulsorily convertible preference shares (CCPS) at an issue price of Rs 1,69,052 each, resulting in a capital raise of Rs 15 crore from A91 Partners, as outlined in the company’s regulatory filings accessible through the Registrar of Companies.

Additionally, the company issued 168 CCPS at an issue price of Rs 1,42,692 each, raising Rs 2.40 crore from Tancom Electronics. Collectively, these two components enabled DaMENSCH to secure Rs 17.40 crore during this funding round.

According to estimates from Startup Superb, DaMENSCH’s valuation remains flat at Rs 600 crore ($63.5 million at the current exchange rate), compared to its prior valuation of $70-75 million or Rs 582 crore. The recent funding will assist the company in fulfilling its business needs and fostering growth.

Founded in 2018 by Anurag Saboo and Gaurav Pushkar, DaMENSCH is a D2C men’s fashion and lifestyle brand that offers products such as innerwear, casualwear, and everyday apparel through its own platform and various marketplaces. To date, DaMENSCH has secured over $28 million in funding, including a $16.6 million Series B round led by A91 Partners in February 2022.

A91 Partners continues to be the largest shareholder in DaMENSCH, holding a 22.45% stake, with Matrix owning 12.76%. Saama Capital and Whiteboard Capital possess 11.14% and 9.61%, respectively, while co-founders Gaurav Pushkar and Anurag Saboo each maintain a 10.87% stake.

DaMENSCH is yet to file its FY26 results. However, its FY25 performance highlights the competitive dynamics in the D2C men’s apparel arena. The company’s revenue increased by 34% to reach Rs 118 crore, while competitors such as XYXX experienced a 46% rise to Rs 187 crore and reduced their losses to Rs 25.5 crore. In contrast, Bummer, a smaller player, saw a 22% revenue increase to Rs 11 crore, but its losses doubled.

The figures suggest a marketplace in which brands are growing, yet a disparity is emerging in their ability to successfully convert this growth into profitability. As competition escalates, the ability to scale operations, encourage repeat purchases, and optimise distribution economics will become vital for these companies.