E-commerce roll-up company UpScalio on Tuesday said it has raised $42.5 million in Series A funding. This move highlights the new investor rush towards the Thrasio style-business model in India.
The financing round was led by Presight Capital and an undisclosed global hedge fund, with participation from Heliad Equity Partners, MPGI, 468 Capital, Whiteboard Capital. The company also saw capital commitments from freshly minted unicorn OfBusiness, Innoven Capital and Alteria Capital.
Some of the company’s angel investors and advisors include Suhail Sameer (CEO, BharatPe), Radhika Ghai (Co-Founder, ShopClues), Rohit Kapoor (CEO, OYO India & SEA), Arjun Vaidya (Founder, Dr Vaidya’s), and Erik Podzuweit (Founder, Scalable Capital).
The Thrasio model, popularised by US-based Thrasio, the world’s largest acquirer of third-party private label businesses such as Amazon and Flipkart, is picking up pace in India. The model has been a clear investor favourite, with recent rounds from GlobalBees, Mensa Brands, GOAT Brand Labs and 10club collectively raising around $276 million in the last few months.
Thrasio-style companies acquire cash flow positive brands, but instead of acquiring the whole company, they structure it as an asset sale. Debt is then used to service the deal terms. Within three years of launch, Thrasio has acquired, consolidated and scaled up about 100 brands on Amazon.
UpScalio was founded by former McKinsey & Company consultant Gautam Kshatriya, former Bain & Company consultant Saaim Khan, and former Disney+Hotstar and Purplle marketing and growth executive Nitin Agarwal. The company has a team of over 50 specialists across functions.
“This team is expected to double to over 100 by the end of the year as the ecommerce accelerator launches operations with its partner businesses,” the company said in a statement.
The company is looking at a ticket size of anywhere between Rs 5 crore and Rs 50 crore.
“Having said that, we are flexible, especially on the upper end, for high quality assets and entrepreneurs,” said Gautam Kshatriya, CEO and Co-founder of UpScalio. “We are in advanced stages of transactions with several brands and will be announcing those soon.”
UpScalio will help the brands with multi-marketplace management, digital marketing, branding, logistics, sourcing, finance and business operations, all optimized using advanced analytics. The company will help them scale profitably, it added.
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