US e-commerce roll-up start-up Thrasio has announced its foray into India with a Rs 3,750 crore commitment towards the market. This announcement comes on the heels of nearly a $1 billion fund-raise that the roll-up unicorn raised in October last year, which was led by Silver Lake at a $ 5 billion valuation. Thrasio Holdings, has also acquired Lifelong Online, a leading online consumer brand, with an aim to build its portfolio of digital-first brands. Thrasio's entry into India -- known to be one of the fastest growing digital consumer markets globally -- at a time when homegrown start-ups are also bullish on brand-aggregation with intense competition brewing between companies such as Mensa Brands, GlobalBees, among others.
The announcement is a major step in the company’s evolution journey, bringing with itself a huge opportunity for the online sellers, said Thrasio CEO Carlos Cashman in a company statement. India is one of the fastest-growing regions for Amazon’s third-party marketplace, making it enticing for aggregators. This enormous opportunity, combined with the success of leading acquirers, has fuelled a rise in start-ups created under the rubric of the “Thrasio model”, the company said in a statement.
Founded in 2018, Thrasio thrives on brands that sell on Amazon. The company collaborates and acquires them. Once the brand has been acquired, Thrasio then upgrades its product development, marketing, and supply-chain management.
With Lifelong leading the on-ground execution, Thrasio gains the strength of a knowledgeable, local company to run the Indian business. Backed by Thrasio’s extensive experience and the Rs 3750 crore commitment to acquire Indian businesses, the company will quickly be a significant player in the seller ecosystem, it added.
“We couldn’t be more excited to work with Lifelong Online and, together, take our proven model to India,” the company's statement quoted Cashman as saying.
“As we got to know Lifelong, it became clear that they are the ideal partner for what we want to accomplish. In addition to acquiring and growing digital-first businesses, we plan to participate in the ‘make in India’ movement by transitioning the manufacturing for some of our products to the country,” Cashman added. Thrasio has acquired more than 200 brands and raised more than $3.4 billion in funding and will continue to deploy those funds around the globe to acquire businesses with promise. Their entrance brings the firm with the most aggregation experience to the Indian market, while Lifelong Online would provide insight into Indian consumers and the local e-commerce ecosystem. “We are building a technology-first, next-generation consumer goods company,” explained Bharat Kalia, CEO of Lifelong Online.
“Thrasio’s acquisition expertise and the strength of our platform across e-commerce, D2C, Amazon, and Flipkart are a perfect match. We are already in active discussions with a number of sellers, and we’re excited to help Indian entrepreneurs realise the full potential of their brands and products. With lucrative exit options for founders, we hope to encourage even more brands and sellers to join the D2C ecosystem in India,” Kalia added.