In a model similar to Thrasio's, Evenflow acquires and scales third-party brands that sell on e-commerce marketplaces like Amazon and Flipkart.
Evenflow is now in advanced talks to raise $6-7 million.
Ananth Narayanan, Rishi Vasudev, and FirstCry, all ecommerce experts, have founded comparable businesses this year.
Evenflow Brands, a Mumbai-based startup, has raised an undisclosed amount from Mumbai-based venture capital firm Equanimity Ventures.Evenflow uses a model similar to Thrasio's to acquire and scale third-party brands that sell on ecommerce marketplaces like Amazon and Flipkart.
Evenflow, founded by Utsav Agarwal and Pulkit Chabbra earlier this year, focuses on firms that generate 80% or more of their revenue from ecommerce marketplaces.Lots of new Indian entrepreneurs have raised funds in this market in the previous few months, inspired by the worldwide success stories like Thrasio, Perch, Branded, and SellerX.
"We're thrilled to have Equanimity join us on this adventure.We've put together a fantastic team with a wide range of skills in a short amount of time, and we've already signed a few letters of intent with sellers."We're seeing a lot of demand from sellers and investors to jump on board this global roll-up bandwagon," Agarwal said.
According to industry sources, Evenflow is now in advanced talks to raise $6-7 million.Several well-known Indian and international venture capital firms have expressed interest in participating in this arena, according to the company.
Evenflow's business model is comparable to that of Thrasio, a $3 billion to $4 billion ecommerce company based in Massachusetts.Thrasio grew in popularity in 2020 as a result of its consolidation of Amazon third-party sellers in the United States.It was founded in 2018 and has since purchased around 100 third-party sellers and Amazon Fulfillment (FBA) firms, claiming to provide superior economies of scale to manage and expand those businesses.It tries to buy brands from small business owners based on Amazon's "top-reviewed, bestselling" vital goods lists.
Smaller companies are on the rise in India, with about 850K sellers selling on Amazon India.According to Amazon, roughly 4,152 of these will have sold INR 1 crore in 2020.On Flipkart, there are approximately 350K such sellers, with 70 of them exceeding INR 1 crore in sales.
As a result, the D2C brand area is extremely popular and profitable for investors.Mensa Brands, a comparable D2C firm formed by ex-Myntra and Medlife co-founder Ananth Narayanan, raised $50 million in a mix of equity and debt from Accel Partners, Falcon Edge Capital, and Norwest Venture Partners, among others, in its Series A funding round earlier this week.
Tiger Global, a New York-based investment firm, is said to have sponsored a similar startup led by Flipkart veteran Rishi Vasudev.GOAT Companies Labs, Vasudev's latest fashion and retail business, will acquire lifestyle brands and help them create and scale online.
In April, it was reported that FirstCry, a Pune-based kidswear ecommerce unicorn, was planning to launch a Thrasio-style investment venture for D2C brands and online retailers, with $75 million in capital commitments.SoftBank of Japan, TPG, ChrysCapital, and Premji Invest are among the investors in the company.