TechnoSport Secures $21 Million to Fuel Activewear Growth

TechnoSport, a 17-year-old performance wear brand known for its affordable, high-quality activewear tailored for the Indian market, has secured its first round of external funding. The company has raised Rs 175 crore ($21 million) from investment firm A91 Partners.

Investing in Growth Strategies

TechnoSport plans to utilize the fresh capital to bolster its manufacturing capabilities, cultivate a stronger digital brand presence, and amplify its marketing efforts. Additionally, the funding will support the expansion of the company’s sales and distribution channels, reaching new customers across India.

Market Leader with Established Presence

Led by Puspen Maity, TechnoSport boasts a well-established network spanning over 15 Indian states with more than 5,000 active retail touchpoints. Over the past three years, the company has maintained a consistent growth trajectory, averaging between 30% and 40% annually. This impressive performance solidifies TechnoSport’s position as a key player in the Indian activewear market.

Global Ambitions and Market Opportunity

Beyond its domestic presence, TechnoSport has also established operations in South Africa and the UAE. The Indian sports apparel market itself is projected for significant growth, with a valuation of $673.34 million in 2022 and an anticipated CAGR (Compound Annual Growth Rate) of 16.2% reaching $1.92 billion by 2029. Recognizing this potential, TechnoSport has set an ambitious goal of capturing 10% of the market share.

Financial Performance and Competitive Landscape

TechnoSport’s financial health reflects its strong market position. The company’s operating revenue for FY23 surged by 28%, reaching Rs 287 crore compared to Rs 224 crore in FY22. Additionally, profits witnessed a significant increase, more than doubling to Rs 29.26 crore during the same period.

TechnoSport faces competition from venture capital-funded companies like Agilitas Sports. This recently launched startup, helmed by former Puma India Managing Director Abhishek Ganguly, has already secured over $60 million across two funding rounds from investors Nexus Venture Partners and Convergent Finance LLP. Another competitor is Zymrat, acquired by D2C fashion brand Styched in September 2023. Despite these competitors, TechnoSport’s established presence, consistent growth, and strategic investment plans position it well for continued success in the thriving Indian activewear market.