A91 Partners has contributed Rs 175 crore ($21 million) to the performance wear brand TechnoSport. For the 17-year-old company, this is its first external fundraising campaign.
According to a press release from the company, TechnoSport intends to use the additional funding to improve its manufacturing capabilities, concentrate on developing digital brands, and increase marketing. The money will also be used to help TechnoSport’s sales and distribution networks grow.
TechnoSport, led by Puspen Maity, provides reasonably priced, high-performance clothing that is suited for the Indian market. Its network includes more than 5,000 active retailer touchpoints spread over 15 states.
TechnoSport asserts that it has maintained an average growth rate of between 30% and 40% over the last three years, solidifying its position as a major participant in the activewear market.
TechnoSport has operations in the UAE and South Africa in addition to India.
At a compound annual growth rate (CAGR) of 16.2%, the Indian sports apparel market, estimated at $673.34 million in 2022, is projected to reach $1.92 billion by 2029. Ten percent of the market is what TechnoSport wants to have.
Operating revenue for TechnoSport increased by 28% from Rs 224 Crore in FY22 to 287 Crore in FY23. The company’s earnings increased by more than 2X during that time, reaching Rs 29.26 crore.
TechnoSport will face competition from Agilitas Sports, a recently established startup that was founded by Abhishek Ganguly, the former managing director of Puma India, among venture capital-funded businesses. In just two rounds, Agiltas has already taken home more than $60 million from a fund run by Nexus Venture Partners and Convergent Finance LLP. Additionally, it faces competition from Zymrat, which D2C fashion and lifestyle brand Styched acquired in September of last year.
