BENGALURU: E-commerce executives are now leveraging their expertise to raise funding for investments into direct-to-consumer (D2C) brands sold on online market places—popularly called the Thrasio model, adapted from the US-based unicorn.
Former Myntra CEO and Medlife co-founder Ananth Narayan has raised $50 million through his firm, Mensa Brands, to invest in third party businesses that sell on Amazon, Flipkart, etc.
Over the next three years, Mensa Brands plans to acquire more than 50 brands across categories including home, garden, apparel, personal care and beauty categories.
E-commerce sellers, who have a small revenue base and typically find it hard to attract institutional investors, have benefitted from Tharsio business model which helps them scale their business and raise more capital.
In India, the concept is in a nascent stage.
Former Flipkart top executive Rishi Vasudev is also said to be in talks with various investment firms to support D2C brands on e-commerce platforms.
“Scaling digital brands from India is a large opportunity. Incredibly excited and passionate about partnering with terrific founders and helping scale their brands globally. Having seen this first hand at Myntra and Medlife we know the effort it takes to scale digitally —we will be a true trustee of your brand,” Narayanan said.
Mensa Brand’s funding round was led by Accel Partners, Falcon Edge Capital, and Norwest Venture Partners as well as by prominent angel investors such as Kunal Shah, Mukesh Bansal, Rahul Mehta of DST Global and Scott Shleifer.