The rush to build a Thrasio-type platform in India is getting massive investor interest and highlighting this new trend is an e-commerce roll-up company – UpScalio.
The five-month-old company has raised $42.5 million as part of its Series A round, led by Presight Capital and an undisclosed global hedge fund, with participation from Heliad Equity Partners, MPGI, 468 Capital, Whiteboard Capital.
The funding round also saw capital commitments from a consortium of lenders including 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).
“We feel privileged that so many leading investors and advisors have chosen to invest in us. We are also humbled by the talented e-commerce entrepreneurs that have built resilient businesses in the face of the pandemic and are grateful for their trust in partnering with us to scale their business,” said Gautam Kshatriya, CEO and Co-founder of UpScalio.
What’s behind the Thrasio Frenzy?
In just a few months, the Thrasio model has shown immense potential in the Indian startup ecosystem. While the concept is new, it has definitely attracted the eyeballs of investors.
Now, over $300 million is being poured into the initial investment rounds of Thrasio’s India equivalents.
FirstCry-backed GlobalBees broke all records by raising $150 million in its maiden round whereas Mensa had announced $50 million worth of funding. In July, GOAT Brand Labs had scooped up $36 million in its maiden institutional round from Tiger Global Management, Flipkart Ventures and Mayfield. 10club raised $40 million in its seed round whereas Powerhouse91 scooped up two undisclosed rounds in January and July.
How UpScalio plans to bank on the Thrasio model to succeed
According to UpScalio, the Indian e-commerce market is one of the fastest-growing globally and is expected to grow at over 35% a year over the next five years.
UpScalio aims to be an e-commerce brand investor and operator by partnering with digital-first brands that sell on e-commerce sites such as Amazon, Flipkart, Myntra and Nykaa.
The startup said it will help the brands with multi-marketplace management, digital marketing, branding, logistics, sourcing, finance and business operations, all optimized using advanced analytics. It aims to help the companies profitably scale by 5-10x.
Founded by former McKinsey and Company consultant Gautam Kshatriya, former Bain & Company consultant Saaim Khan, and former Disney+Hotstar and Purplle marketing and growth executive Nitin Agarwal, Upscalio has a team of over 50 specialists across functions.
The startup is expecting to double to over 100 by the end of the year as the e-commerce accelerator launches operations with its partner businesses.