thrasio: Exclusive: Thrasio eyes India entry, in talks to acquire Lifelong Online
Lifelong Online will also be the vehicle through which Tharsio will look to build its India business, sources briefed on the matter added.
Thrasio is expected to pay $30-$50 million for the acquisition.
Tanglin Ventures, an early-stage venture fund backed by Udaan cofounder Sujeet Kumar and Flipkart group CEO Kalyan Krishnamurthy, is expected to exit. Tanglin holds over 20% stake in the startup.
After the acquisition, Thrasio has plans to invest as much as $500 million in India as it has identified the country as one of the largest available consumer markets.
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Fosun International, a Chinese conglomerate that invested in Delhivery in 2017, has sold a part of its stake in the logistics firm for $50 million, sources told us, and could exit the startup completely before its IPO.
“They (Thrasio) will run India operations through the Lifelong India team. The final contours of the acquisition are being finalised and should be closed in another month or so,” one of the sources said.
Lifelong Online sells consumer durables in segments like kitchen, grooming, home appliances, fitness, lifestyle and accessories.
According to sources, its monthly peak sales have been in the range of around Rs 40-Rs 50 crore and it is known for its kitchen and home appliances.
Lifelong Online’s cofounder and CEO Bharat Kalia declined to comment. Thrasio did not reply to an email till press time Sunday.
Thrasio’s India bet comes at a time when several startups replicating its model here have raised hundreds of millions in funding over the past few months amid increased adoption for direct-to-consumer brands, aided by the broader growth in ecommerce
Among the prominent Indian startups in the space are Goat Brand Labs, backed by Flipkart’s venture arm and Tiger Global; Mensa Brands, founded by former Myntra CEO Ananth Narayanan, 10Club and SoftBank-backed
Mensa Brands and GlobalBees have
raised $50 million and
$150 million, respectively, through a mix of equity and debt, while
10Club has raised one of the largest seed rounds, $40 million. Goat Brand Labs has
scooped up $36 million.
10Club made its second acquisition with sports gear maker Skudgear after acquiring NewBorn, a brand selling baby products on Amazon.
GlobalBees has acquired home care products brand The Better Home.
Industry sources aware of the matter said these startups, which have raised significant risk capital, are also in various stages of making other acquisitions and Thrasio’s entry would further shake up the space.
The D2C brand space will be a $100 billion market opportunity by 2025, investment banking firm Avendus Capital said in a report.