Using a model pioneered by Thrasio in the US, several startups like Mensa Brands and GlobalBees were born in India during the pandemic. Let us understand the appeal of these Thrasio-style startups
If you are a founder in India running a successful small business online, you would not have started it with the idea of an exit. But now, a new breed of startups has emerged. It specializes in acquiring fast-growing digital-first brands and scaling their products.
This template has been spearheaded by the three-year-old US startup Thrasio, which acquires successful third-party Amazon sellers and gives their founders a lucrative exit. Thrasio’s team of experts now manages a global portfolio of nearly 100 brands. Founded in 2018, Thrasio made an incredible $100-million profit last year on revenue of $500 million. The company is valued at $6 billion based on its latest funding round.
A number of startups have spawned in India in the past year to replicate Thrasio’s success in the country and have together raised around $300 million so far. Some of them are Mensa Brands, GlobalBees, 10Club, Upscalio, Evenflow, Powerhouse91 and GOAT Brand Labs. Venture capital investors have poured in significant amounts of money in these startups in a short period.
For instance, Mensa Brands, founded by former Myntra CEO and Medlife co-founder Ananth Narayan, has raised over $80 million in two rounds of funding.
GlobalBees set a record for the biggest Series A funding in India when it raised $150 million in June, split equally between equity and debt.
Nine-month-old 10Club raised $40 million in one of the largest seed financing rounds in India.
GOAT Brand Labs, founded by former Flipkart executive Rishi Vasudev, closed a $36 million Series A round in July.
These startups acquire online brands across categories like fashion, beauty, personal care, food, home, sports and lifestyle.
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