When 10club, one of India’s rising rollup stars, announced a pivot to singlebrand play, the Bengaluru-based firm wasn’t just altering its own course but catching the pulse of global markets, offering a glimpse into what might be on the horizon for its Indian counterparts. 10Club was among a host of start-ups that emulated the model of Thrasio, a US-based e-commerce brand aggregator, in India and swept the market as investors eagerly poured funds into them. The frenzy was such that Mensa Brands, launched by former Myntra CEO Ananth Narayanan, became a unicorn in just six months, the fastest Indian start-up to enter the coveted club.
What explains the tremendous investor interest this space saw then? The answer may lie in the business model. Commonly known as roll-ups, these e-commerce brand aggregators specialise in acquiring sellers who primarily operate on online marketplaces. The idea is to bring together multiple brands under one umbrella and build efficiencies through better marketing spends, product development, inventory management and supply chain management for rapid growth.
Thrasio, founded in 2018, pioneered the art of acquiring and scaling e-commerce brands, with a particular emphasis on brands that operate on the Amazon marketplace. Following the early success of the model, several others quickly emerged, including Perch, Heyday, Boosted Commerce, and Branded. During the peak of the growth years, some of them were acquiring four to five companies a week for about six months straight.
A SUDDEN END TO THE HONEYMOON
In 2021, the e-commerce surge, driven by the digital explosion during the pandemic, increased confidence in the roll-up model. Aggregators splurged to seal deals, buying brands at several multiples of adjusted Ebitda.
Bu hikaye Business Today India dergisinin April 14, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Today India dergisinin April 14, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
The EV Craze
The country’s growing luxury car market is seeing a shift with environmentally-conscious consumers betting on electric vehicles as a sustainable travel option. Though just 6%, the share of EVs in the luxury segment is rising rapidly
The Storage Boom
Data centres are being built at a frenetic pace in india as companies scramble to meet the ballooning demand from mobile phone users and firms adopting al. Can the country’s energy infrastructure keep up?
India Beckons
Owing to rising incomes in India and overall wealth expansion, luxury brands are wooing the country like never before
The Pearls of The Sea
Caviar, that rare food, is considered the epitome of fine dining. Here is everything that you need to know about it
66.Brand persona should define the core"
I’d say this was a strategic pivot. We had an iconic brand, but had, over time, evolved into diversified lines of businesses that could no longer be represented within the confines of our ‘name’.
Unwind in Style
Here is acomprehensive list of top tech picks that help you unwind by blending perfection in performance with luxury
A Lifelong Affair with Inspiration
In my art journey, the diversity of my acquisitions mirrored the expanding horizons of my understanding of art
Make it Bubbly
Champagne is much more than just a symbol of celebration and success. Know about its nuances beyond the bubbles
Palatial Splendour
Buoyed by renewed demand, sales of the glitzy mansions of the ultra-rich are surging like never before. Real estate majors are looking to capitalise on this by launching luxury offerings in record numbers
Of Beaches and Cream
GianChand Single Malt Whisky