In a model made famous by US outfit, Thrasio, a bunch of Indian startups, including 10Club, Upscalio, and Mensa, are buying up and scaling digital brands with the aim of becoming the country’s online version of P&G or Unilever, KrAsia reports.
Last month, direct to consumer focused investment firm Fireside Ventures co-led a $40 million round in 10Club, the largest seed round in India. 10Club replicates Thrasio’s model of acquiring digital marketplace brands, giving them a make-over, ramping up marketing and optimising costs to create a profitable business.
Three-year-old Thrasio has acquired over 100 third-party private-label businesses listed on Amazon and last year reached $500 million in revenues and made $100 million in profit.
Thrasio’s pace of scale and profitability has inspired about eight to ten Indian startups to bring this model to the country. Aside from 10Club, other examples include Mensa Brands, GOAT Brand Labs, Powerhouse91, and Upscalio.
Investors in India have pumped nearly $300 million in Thrasio’s India equivalents, local media Moneycontrol reported.
The company is looking to build a house of consumer brands in India and has a similar model to that of US firm Thrasio, which acquires third-party brands that sell on Amazon and then attempts to supercharge their growth.