My NewBorn, an ecommerce online business in the baby items area, has been acquired by 10club, a Thrasio-style enterprise.
In June, 10club received $40 million in one of India's largest seed investments.
Rakesh and Abhishek Jain, the owners of My NewBorn, will join 10club as entrepreneurs in residence for a minimum of 24 months, according to Bhavna Suresh, cofounder of 10club. The founders will be paid a certain sum upfront and their entire team of 13 will join 10club, she added.
They will also receive a percentage of the business's cash flow and profits for the next five years after the acquisition. "We are announcing our first acquisition, but we will be announcing others very shortly.""We've already got a bunch of them running," she added, declining to say how many.
Former Lamudi CEO Suresh, 22feet co-founder Deepak Nair, and Class 5 Global co-founder Joel Ayala founded 10club last year to acquire and accelerate the growth of ecommerce merchants who have developed sustainable companies on ecommerce marketplaces like Amazon and Flipkart.
It specialises on sports, home décor, and baby and pet products.
According to the company, My NewBorn is one of the top sellers in the category on Amazon India's marketplace.
To extend its product selection, the 10club team will use data from the brand's consumer purchase behaviour and usage habits.
Suresh stated that the company has purchased several other companies and is in the process of merging them into 10club, which takes about 60 days.
Fireside Ventures-backed startup is on track to acquire 15-20 businesses in the near future.
"Every firm we look at today grows at a rate of 60-70 percent every year."
As a result, they've discovered traction and product-market fit.
In general, they haven't found a brand proposition, they haven't begun to build a community, and they haven't begun to build stickiness.
Suresh added, “10club normally comes in at this intersection.”
“However, when you grow a business from Rs 20 to Rs 100 crore, the processes, capital, and structure that you require are what we provide.”
Thrasio-style play is based on Thrasio Holdings Inc, a corporation based in the United States that purchases and scales brands on Amazon's marketplace.
This model has recently gained popularity in India. Supam Maheshwari, the founder of FirstCry, launched GlobalBees this year, while Ananth Narayanan, the former CEO of Myntra, launched Mensa Brands and Rishi Vasudev, a former Flipkart executive, launched Goat Brand Labs.
These startups have been backed by investors including SoftBank,
Falcon Edge Capital, Flipkart’s venture arm, and Tiger Global.
In the last 60 days of its operation as part of 10club, the brand has been launched on five online channels including Flipkart, FirstCry and Meesho’s direct selling platform. 10club intends to take these enterprises straight to consumers after scaling businesses on online marketplaces and assisting brands in building strong communities.
Source- The Economic Times