Thrasio-style 10club has made its first acquisition, My NewBorn, an online e-commerce business in the baby products category.
10club raised $ 40 million in June – one of the largest seed rounds in India.
10club co-founder Bhavna Suresh told ET that My NewBorn founders Rakesh and Abhishek Jain will join 10club as entrepreneurs for at least 24 months as part of the acquisition.
The founders will be paid a certain amount upfront and their entire team of 13 will join 10club, she added.
In addition, they will receive a percentage of the cash flow and profit from the business for a period of five years after the acquisition.
“We are announcing our first acquisition, but we will be announcing more very soon. We already run a number of them, ”she said, declining to reveal details.
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Founded last year by former Lamudi CEO Suresh, 22feet co-founder Deepak Nair and Class 5 Global co-founder Joel Ayala, 10club is acquiring e-commerce retailers who have built sustainable businesses on e-commerce marketplaces like Amazon and Flipkart and you Accelerate growth.
It focuses on sports, home accessories and the baby and pet category.
My NewBorn is one of the top sellers in the category on the Amazon India marketplace, the company said.
The 10club team will use insights from shopping behavior and usage patterns of the brand to expand the product portfolio.
Suresh said the company has acquired several other companies and is in the process of integrating them into 10club – which typically takes 60 days.
The startup, backed by Fireside Ventures, is well on its way to acquiring 15-20 companies in the near future.
“Every company we look at today is growing at around 60-70% annually. So you’ve found the traction and the product market fit. What is generally missing is that they haven’t found a branded offering, they haven’t started creating a community, and that bond has not yet started. 10club usually passes this intersection, ”said Suresh.
“… but when you take a company from Rs 20 to Rs 100 crore, the processes, the capital and the structure that you have to do – that’s where we come in.”
The Thrasio-style game is modeled on the US company Thrasio Holdings Inc., which acquires and scales brands on the Amazon marketplace.
In India, this model has recently picked up speed.
This year alone, FirstCry founder Supam Maheshwari launched GlobalBees, former CEO of Myntra, Ananth Narayanan, Mensa Brands and former Flipkart manager Rishi Vasudev Goat Brand Labs.
These startups were supported by investors such as SoftBank, Falcon Edge Capital, Flipkarts Venture-Arm and Tiger Global.
Suresh said she’ll be scaling the four-year-old brand up to 20 times its current annual sales rate.
In the last 60 days of operation as part of 10club, the brand has been launched on five online channels including Flipkart, FirstCry and Meesho’s direct sales platform.
After 10club has scaled businesses in online marketplaces and helped brands build strong communities, 10club plans to bring these projects directly to consumers.