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E-commerce rollup firm Evenflow Brands makes four quick acquisitions 

E-commerce rollup firm Evenflow Brands makes four quick acquisitions 

The aggregator of third-party online sellers has kickstarted 2022 with the acquisition of two fitness brands, a kitchen label and a gardening firm.

The acquisition includes two sports and fitness brands Vifitkit and Yogarise; Frenchware, a kitchen label; and Cingaro, a gardening brand. All the ventures have an annual run rate between $500,000- $2 million The acquisition includes two sports and fitness brands Vifitkit and Yogarise; Frenchware, a kitchen label; and Cingaro, a gardening brand. All the ventures have an annual run rate between $500,000- $2 million

Evenflow Brands, an aggregator of third-party online sellers, has acquired four consumer brands in India. This is part of the venture’s wider strategy to significantly expand its reach, portfolio and demand.   

The acquisition includes two sports and fitness brands Vifitkit and Yogarise; Frenchware, a kitchen label; and Cingaro, a gardening brand. All the ventures have an annual run rate between $500,000- $2 million. Further, as part of the deal, the founders of Frenchware and Cinagro will also join Evenflow as consultants. 

“We are looking to triple the growth for each of these brands in the next six months,” said Utsav Agarwal, Co-founder & CEO, Evenflow. 

“We took our time to build our playbooks and formulate our expansion plans. At present, all four brands are Amazon only but we are in the process of onboarding them on other marketplaces including Flipkart, Meesho and Jiomart,” he added. 

Evenflow has acquired all these brands at an upfront amount basis EBITDA multiple valuations and performance earn-outs spread over three years. Founded by former Uber executives Utsav Agarwal and Pulkit Chhabra in 2021, the e-commerce rollup over the past three months has acquired seven brands, including the latest acquisitions. 

Earlier, the company acquired Xtrim, a sports and fitness accessories brand; baby-care brand BabyPro; and Rusabl, an online brand in the daily sustainable category. 

Unlike other Thrasio-style rollups focusing on D2C brands, Evenflow is heavily focused on third-party sellers on marketplaces and acquires them at EBITDA multiples, not revenue multiples.  

Mumbai-based Evenflow has been acquiring third-party e-commerce sellers with attractive product portfolios and aims to establish them as strong brands across multiple categories in e-commerce. 

Vifitkit, a three-year-old brand, has over 8,000 ratings on Amazon's Yoga Mat vertical while Hyderabad-based Cinagro - started in 2017 - is one of the highest rated brands in the gardening category.  

“We are extremely mindful of the number of brands we acquire; the idea is to solve all operational bottlenecks and give each brand enough focus on its branding, launching new selection, formulating platform level strategies independently for it to thrive, unlock hyper-growth and unleash its true potential,” said Pulkit Chhabra, Co-founder & VP Acquisitions, Eveflow.     

Globally, third-party sellers on Amazon crossed $300 billion in GMV and are expected to reach $650 billion in GMV by 2025. More importantly, over 700,000 sellers signed up on Amazon India in 2020, making it the highest among any Amazon marketplace globally. 

Also read: Dozee raises Rs 71 cr in funding round led by ace techie Gokul Rajaram

Published on: Jan 18, 2022, 2:26 PM IST
Posted by: Mehak Agarwal, Jan 18, 2022, 2:22 PM IST