Shoe startup Yoho aims to fill the market gap in comfortable footwear

The direct-to-consumer footwear brand aims to enhance customer experience and product offerings following a Rs 27 crore funding boost. It will deploy the funds to drive business growth and innovation

Ahmad Hushsham made a bold choice to transition from a thriving corporate career to pursue his true passion – ensuring customers find the perfect pair of shoes. His entrepreneurial spirit was ignited by a serendipitous encounter with Prateek Singhal at a shoe store in Kanpur. Bonding over their shared dissatisfaction with the lack of focus on footwear comfort, they recognised an untapped market for affordable yet high-quality footwear. Inspired by Ahmad’s decision to quit his corporate career to prioritise customer satisfaction, they set out on a mission to make comfortable footwear accessible to all.

The duo founded direct-to-consumer footwear brand Yoho in 2021 to deliver innovative and comfortable footwear to consumers across India and beyond. With a focus on technology-driven solutions and customer satisfaction, Yoho rapidly emerged as one of the leading firms in the Indian footwear market. Today it offers a diverse range of products, from casual wear to formal shoes for both men and women.

Yoho has outlined an ambitious expansion strategy to strengthen its domestic market position and reach new customers. It also seeks to boost its offline presence across India, targeting partnerships with 2,000 multi-brand outlets in Tier-I and Tier-II cities.

Meanwhile, the launch of its Exclusive Brand Outlets will offer an enhanced customer experience through the innovative use of technology, including using AI to address common fitting issues. This would help reduce returns and optimise inventory management. It also plans to create stronger brand awareness through a range of marketing initiatives and community-building efforts, and increase its product catalogue from 100 to 300 styles by 2025.

Yoho secures Rs 27 crore for expansion

Yoho has recently raised Rs 27 crore in a Pre-Series B funding round led by Gulf Islamic Investments (GII), a global alternative investment company, with over $4.5 billion of assets under management. The aim is to use the funding as growth capital to power Yoho’s domestic and international expansion. Notable additional investors supporting the Yoho round included Rajeev Misra (CEO, SoftBank Investment Advisers), Vijay Shekhar Sharma (CEO, Paytm), Rukam Capital, and Pankaj Chaddah (Founder, Shyft).

The startup aims to deploy the additional funds strategically to drive its growth and innovation, including investment in research and development. The aim is to bring unique products to market, and build on the success of Yoho innovations such as Blinc (India's first hands-free sneaker).

Following this capital infusion, co-founders Ahmad Hushsam and Prateek Singhal believe Yoho is well-positioned to accelerate product development and expand market reach. “Our mission has always been to provide high-quality, comfortable footwear at accessible prices, and this investment will enable us to bring this vision to a much wider audience, in India and globally,” said Hushsam and Singhal.

Global expansion with investor support

Riding on strong investor backing, its growth plans also extend beyond Indian borders. It has plans to expand into international markets including the Middle East, Africa, and the United States. This global expansion will leverage its online and offline channels, aiming to replicate Yoho’s domestic success on an international scale.

Commenting on GII’s investment in Yoho, Mohammed Al-Hassan, GII’s co-founder and co-CEO, said GII provides innovative growth funding solutions that address evolving consumer preferences. “Yoho’s approach of combining biomechanical expertise with affordability targets a critical gap in the market that GII’s investment can address.” 

Fellow GII co-founder and co-CEO Pankaj Gupta believes Yoho’s growth in a short period strongly validates its product-market fit. “Our investment in their unique value proposition represents the kind of groundbreaking approach that we believe can reshape traditional markets and benefit consumers on a wider scale,” said Gupta.

Yoho set to disrupt Indian footware market

Rajeev Misra, CEO, SoftBank Investment Advisers, said there is a significant void in the consumer market for scientifically designed, affordable footwear that caters to the discerning Indian consumer. “Yoho’s innovative approach, which combines biomechanical expertise with accessibility, is precisely positioned to fill this gap,” said Misra. “This alignment of cutting-edge design and affordability exemplifies the disruptive strategies that can capture substantial market share in India’s rapidly evolving economy.”

Archana Jahagirdar, founder and Managing Partner, Rukam Capital believes footwear is one of the most exciting categories in the consumer segment. “We believe that to build a meaningful large company in this space, you need entrepreneurs with experience and knowledge, which these founders bring to the table in ample measure,” said Jahagirdar.

Yoho aims to achieve 5x growth in the next year, expanding its offline presence and product portfolio. The company also plans to introduce sports and kids’ footwear categories.

From 2021-2022, Yoho said it saw eight times growth and six-fold growth from 2022 to 2023, we saw 6x growth. This year the company is eyeing to clock Rs 100 crore in revenue.

Co-founder’s expertise fuelled Yoho’s growth

Building on a solid foundation from his time at PayTM Mall, where Ahmad scaled the footwear, accessories, and gift vouchers category to an impressive $200 million GMV, he demonstrated his strategic vision and leadership skills. His early involvement with Yebhi and Bigshoebazaar further enriched his understanding of the ecommerce and footwear industries, enhancing his ability to drive success at Yoho.

An alumnus of Chatrapati Sahuji Maharaj Kanpur University, Hushsham was a former executive at online shopping platform Paytm Mall. There he scaled the footwear, accessories, and gift vouchers category to an impressive $200 million GMV (gross merchandise value). He also demonstrated his strategic vision and leadership skills. His early involvement with Yebhi and Bigshoebazaar further enriched his understanding of the e-commerce and footwear industries. This is enhancing his ability to drive success at Yoho.

Leveraging tech expertise for shoe startup

Yoho’s other co-founder Singhal has a background in artificial intelligence, healthcare, and food delivery. His entrepreneurial journey began after graduating from IIT Delhi. There he honed his technical skills and laid the foundation for his future endeavours. Alongside his corporate career, Singhal maintained a keen interest in footwear design. He recognised the potential for innovation in an industry often overlooked by technology.

During his time at healthcare platform 1mg, he spearheaded the transformation of the diagnostics business into a profitable venture. Before this, Singhal played a crucial role in scaling food delivery firm Zomato’s operations. He facilitated its expansion into new markets and the introduction of innovative products.