OYO's profitable comeback, XYXX's ₹30 Cr. fundraise and Akshayakalpa’s dairy playbook 💰

Your weekly doze of tangible business insights.

We are back with our newsletter edition, which covers three important business topics in one go. Today, we discuss OYO’s profitable comeback in FY25, XYXX's ₹30 Cr. fundraise and Akshayakalpa’s ₹400 Cr. dairy playbook.

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OYO's profitable comeback 🏩

First, some context.
OYO, once the poster boy of Indian hospitality and startup ecosystem, is making a strong comeback after suffering over ₹1,000+ Cr. in losses in FY23. In the first nine months of FY25, it reported a ₹457 Cr. profit, a 300% turnaround from a ₹111 Cr. loss at the same time last year. And it’s not stopping there, it is projecting a profit after tax (PAT) of ₹1,100 Cr. for FY26. So what changed?

The acquisition masterstroke.
If you didn’t notice, for the last two years, OYO has been going all in on international markets. Ritesh Agarwal has said before that the company’s next big growth push will come from outside India—and they’re backing that up with big money. OYO has spent over $550 million on acquisitions, picking up G6 Hospitality (which owns Motel 6 and Studio 6 in the U.S.) and Checkmyguest (a rental property manager in France).

Fact.
G6 is set to be a game-changer for OYO. Multiple sources say it will add ₹630 Cr. to OYO’s expected ₹2,000 Cr. EBITDA in FY26—that’s a solid 30% contribution. Also, if you didn’t know, G6 Hospitality (which owns Motel 6 and Studio 6) is a household name in the U.S. lodging space and has been around for 60+ years.

The positioning flip.
OYO is going after the premium and luxury hospitality market with new brands: Palette (premium) and SUNDAY (luxury), which were launched in India and internationally. The goal? stand apart from competitors like Fab Hotels, Ginger Hotels, and Lemon Tree Hotels while tapping into a higher-margin segment. The strategy is simple: Break away from its budget-hotel image → Build independent brands → Attract new ideal customers → Grow revenue.

Fact.
If you walk into a SUNDAY property, you wouldn’t guess it’s an OYO hotel—and that’s intentional. OYO wants these premium stays to have their own identity.

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XYXX’s ₹30 Cr. fundraise💰

First, some context.
XYXX, the 7-year-old mass premium menswear brand, has raised a fresh ₹30 Cr. round, adding to its total funding of ~₹250 Cr. so far. The round was led by Niveshaay Sambhav Fund and saw participation from Anicut Capital, DSG Consumer Fund, and Sauce Continuity Fund.

The whitespace.
The company made over ₹130 Cr. in revenue in FY24 and offers everything from underwear to loungewear to athleisure to hoodies. Starting as an innerwear brand, it expanded SKUs after building solid trust with users (ages 20 to 36). It competes with legacy brands like Jockey at the same mid-price range. Their wedge? They saw a whitespace in which all inner wear brands were making basic, boring designs, and there was a void for products that give consumers the chance to wear something that reflects their personality and style. In fact, it also introduced MicroModal fabric instead of cotton to stand out in the touch and feel of the products.

Fact.
Even in naming, it played a smart move of not using cliche names like Tommy, Calvin Klein, and Jockey in the innerwear space.

How big is this market?
The inner and comfortwear market is expected to be ₹91,000 Cr. big in 2025. The category is growing at a CAGR of 12%, with more startups like Bummer, DaMENSCH, Bummer, Almo, and Tailor & Circus coming into the picture. Also, shockingly, In India, the menswear market is the largest category with a 46% share of apparel sales, compared to 38% for women and 16% for children.

What’s ahead?
One thing is clear—new brands will emerge in categories that Indian consumers have largely ignored. This is a direct ripple effect of rising GDP per capita and the growing aspirations of India’s top 10%, who drive 50% of the total consumption. We’ve seen a similar trend in the U.S., where brands like Ridge (wallets) and Liquid Death (canned water) have disrupted overlooked categories.

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Akshayakalpa’s ₹400 Cr. dairy playbook 🐄

First, some context.
Akshayakalpa is India’s first certified organic dairy brand. Their mission is simple: disrupt the industry with chemical-free, antibiotic-free, and hormone-free milk dairy products & vegetables. It started in 2010 and now makes more than ₹400 Cr. in annual revenues.

The whitespace.
Akshayakalpa is tackling the overuse of antibiotics and hormones in dairy farming. These chemicals harm cows and can end up in our milk, affecting consumers’ health. This is what the company wants to solve. It has zero tolerance for these practices and wants to ensure animals are healthy and so is the end-product.

Fact.
Akshayakalpa started as a dairy-first company but has now expanded into vegetables. This diversification not only broadens their product range but also helps farmers increase land productivity by providing additional income streams.

The bigger goal.
Akshayakalpa’s mission goes beyond just organic dairy—it’s about empowering farmers. They’ve identified a key challenge: the average age of farmers in India is 55, and younger generations are moving away from farming. Their solution? Turn farmers into entrepreneurs by helping them scale their dairy businesses and boosting their incomes from ₹10,000 to ₹1 lakh per month by giving them education, training, tech support, and access to low-interest loans.

How does it do it?
Within 2-3 years, Akshayakalpa helps farmers with end-to-end farm design and crop planning, as it takes ~3 years for soil to be converted into organic. Out of 100 farmers who apply to become Akshayakalpa’s farming entrepreneurs, only 2-3% are actually able to complete the process.

Crack trust.
The company focused on improving its value communication with users. One standout initiative is the "Visit a Farm" program, where customers can spend a day with farmers and see firsthand how their food is produced. The idea is simple: give customers access and visibility to where the supply is coming from. More trust → more repeat purchases → higher lifetime value from users (LTVs).

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Also, we hosted Shashi Kumar, the co-founder of Akshayakalpa, on GrowthX Inner Circle Podcast.

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