thrasio india, thrasio india investment, carlos cashman, thrasio ceo, lifelong, bharat kalia, lifelong ceo, mensa brands, globalbees
ETtech

Thrasio CEO Carlos Cashman. (Illustration: Rahul Awasthi/ETtech)

Thrasio, the US company which pioneered the model of acquiring private brands on Amazon.com and scaling them up, plans to invest $500 million in India as it sees the country becoming a significant market in the long term, Chief Executive Officer Carlos Cashman told ET in an exclusive interaction.
Thrasio has made its first acquisition in India by purchasing a majority stake in consumer durables brand Lifelong. ET first reported in October that Thrasio was in talks to acquire Lifelong and would be entering the Indian market.
While the deal terms weren’t disclosed, Thrasio is said to have paid $150-200 million for the stake. Lifelong, backed by Tanglin Venture Partners and the Hero Group, will be renamed Lifelong, a Thrasio company as part of the deal where existing investors and the founders have taken a partial exit in the company.
“This deal also includes a multi-year structure based on certain milestones,” a person aware of the matter said. Lifelong cofounder Bharat Kalia will lead the operations for Thrasio in India.

thrasio india, thrasio india investment, carlos cashman, thrasio ceo, lifelong, bharat kalia, lifelong ceo, mensa brands, globalbees
ETtech

Lifelong cofounder Bharat Kalia. (Illustration: Rahul Awasthi/ETtech)

Cashman told ET that this is the first time the three-year old firm, which raised $1 billion in a funding round led by Silver Lake late last year, has opted to go with a local partner outside its home market, as India is one of the fastest growing ecommerce markets and requires its own understanding to navigate and acquire top selling brands on Flipkart, Amazon India and other marketplaces. Globally, Thrasio has over 200 brands under its belt.

Discover the stories of your interest

  • Blockchain

    5 Stories

  • Cybersecurity

    7 Stories

  • Fintech

    9 Stories

  • E-commerce

    9 Stories

  • Artificial Intelligence

    8 Stories

  • Edtech

    6 Stories

    “This ($500 million) is frankly a baseline commitment. The Indian market is so huge. It is way behind compared to the United States, Europe and elsewhere, but ecommerce is growing, marketplaces like Flipkart or Amazon are growing and this dynamic around the world is increasing,” Cashman said, explaining his long-term bet on India. “While right now in India, the opportunity to acquire as many brands and put them together is not as great as in Europe and China, but it’s coming. It’s a much larger market and it’s coming faster.”
    The company doesn’t have any particular timeline for this capital to be deployed, but it will be used over the next few years depending on how the market develops, Cashman said.
    Cashman started looking at India about a year back. According to him, India is not only the fastest growing market but also one of the most attractive ones and the investment committed for now is the least it can do for such a big market.
    “The cultural difference and the infrastructural differences on how a product is delivered… The Amazon ecosystem in the US and Europe is very similar. We know we can’t do that in India. So that’s why it is really important (to have a local partner),” Cashman said, adding that the only other market which looks similar (to India) is Latin America.
    Thrasio surpassed the $1 billion revenue mark last year, according to Cashman, and he expects India to contribute in double digits (percentage) to its business in the next 12-24 months. “I would love to see India growing to 25-50% of what we do ultimately. I am looking at this 5-10 years out. So, when you look at the growth rate of different economies and outlook, you can reasonably see that happening,” he added.
    India Plans Amid Competition
    Thrasio comes to India at a time when the space is seeing increased competition from local Thrasio clones—two of them, SoftBank-backed Globalbees and Falcon Edge-backed Mensa Brands, have turned unicorns.
    More competition is good for everyone and it will lead to more brands getting acquired and create liquidity for founders, Cashman said. “There have been 100 companies around the world who are funded to do what we are doing. I think that’s a great thing. It’s great for entrepreneurs and they are getting exits.”
    Platforms like Mensa Brands and Globalbees have been acquiring early-stage brands in the fashion, home and beauty categories. Tiger Global-backed Goat Brand Labs and 10Club are among the other prominent ventures in the space in India currently.
    Also Read: Thrasio-style startups: Decoding the new mantra for creating a house of brands
    Kalia, who will lead Thrasio India, said it is looking to acquire brands with an annual revenue of a few crores to even Rs 100 crore, in categories like home & kitchen and health & fitness.
    “We want to do deals that are good for both the entrepreneurs and for us. It is important they get a good outcome. We prefer doing a larger percentage (acquisition) upfront because we have built a system which we can use to scale these brands,” he said, adding that these brands will be able to leverage its distribution across the country along with centralised marketing across platforms and a customer service network. “We can take these brands (on the network) and scale them.”
    The Thrasio clones in India are also working with a similar model where they typically own between 51% and 70% and then work with the founders to scale it up. There are usually incentives involved based on certain growth targets.
    According to Kalia, Thrasio India is not looking at long-tail categories like fashion and food for now. “We will continue to go in categories that are adjacent to this (existing categories),” he added.
    Cashman added that competition will always be there as its core premise is to scale brands on leading marketplaces globally. “We are not going to be the only answer (in that case),” he added.
    India Unit IPO?
    Cashman told ET the Lifelong deal contour includes the possibility of listing the India business here separately in the future. He did not share any further details on it. The company hasn’t set any timelines for it yet, he added.
    “It’s definitely on the horizon but it depends on the execution (of India business),” a person aware of the matter said.
    “Lifelong has built market-leading capabilities in consumer insights, product design, supply chain and brand-building. This has allowed them to dominate multiple product categories in India’s digital ecosystem, while being capital efficient,” Ravi Venkatesh, managing partner at Tanglin Venture Partners, said. “We led their Series A in 2019, and continue to be excited as they embark on this partnership with Thrasio.”

    TECH NEWS RELATED

    Crypto.com Hack: CEO Confirms Breach on Hundreds of Accounts; What Action to Take?

    Crypto.com, a platform known for an advertisement involving Matt Damon, faced a hack on its systems earlier, with its CEO Kris Marszalek confirming this security incident. The CEO and the company confirmed this was happening on social media, saying that the company was aware of the breach. Several users got ...

    View more: Crypto.com Hack: CEO Confirms Breach on Hundreds of Accounts; What Action to Take?

    S. Korea aims to become world's 5th-biggest metaverse market by 2026

    SEOUL, Jan. 20 (Yonhap) — South Korea on Thursday unveiled a long-term road map to foster its metaverse industry, with the aim of becoming the world’s fifth-largest market in the next five years. Under the plan, South Korea will foster at least 220 metaverse companies with sales volumes of more ...

    View more: S. Korea aims to become world's 5th-biggest metaverse market by 2026

    NinjaFloki Price Boost: Elon Musk-Inspired Meme Coin Sees 800% Surge Amid Dogecoin, Shiba Inu Crash

    Although most cryptocurrencies are suffering a slump, one unexpected meme coin surged over 800 percent this week. Investors should definitely look out for the play-to-earn coin NinjaFloki, which was named after Elon Musk’s dog. Photo : Matt Cardy/Getty Images Although most cryptocurrencies are suffering a slump, one unexpected meme ...

    View more: NinjaFloki Price Boost: Elon Musk-Inspired Meme Coin Sees 800% Surge Amid Dogecoin, Shiba Inu Crash

    White House meets small and mid-sized firms to discuss competition in tech sector

    1/2 The White House is illuminated in the early evening shortly after U.S. President Donald Trump was acquitted in his U.S. Senate impeachment trial in Washington, U.S., January February 5, 2020. REUTERS/Kevin Lamarque CompaniesAlphabet IncSee allAmazon.com IncSee allYelp IncSee allSonos IncSee allAltex Industries IncSee all The company and law firm ...

    View more: White House meets small and mid-sized firms to discuss competition in tech sector

    Endpoints & encrypted connections top malware vectors - WatchGuard report

    New research from WatchGuard has found that malware is increasingly targeting endpoints more than perimeter, according to detections reported by customers’ Firebox appliances and the WatchGuard Intrusion Prevention Service (IPS). WatchGuard chief security officer Corey Nachreiner says that network attacks decreased slightly in Q3 2021, however malware per device ...

    View more: Endpoints & encrypted connections top malware vectors - WatchGuard report

    What can you do with a marketing degree?

    Marketing majors enter the job market with in-demand skills in research, data analytics, and communication.

    View more: What can you do with a marketing degree?

    Singapore must clamp down on security inertia before digital banking era can take off

    With Singapore's digital bank licensees expected to begin operations this year, a spate of online scams wiping victims of their life savings serves as yet another wakeup call and demonstrates regulations sometimes are the only way to shake organisations out of complacency.

    View more: Singapore must clamp down on security inertia before digital banking era can take off

    StockGro raises $32 million for new products, hiring

    ETtech StockGro founder Ajay Lakhotia. Mumbai: Social investment startup StockGro has raised $32 million led by marquee global investors such as Bitkraft Ventures, General Catalyst, and Lightricks co-founder Itai Tsiddon.Existing investors including Roots Ventures, and Creed Capital Asia also participated in the round. The round is a mix of primary ...

    View more: StockGro raises $32 million for new products, hiring

    Tesla FSD Beta Rumors: Crash Every 36 Mins. Says O’Dowd? User Demonstrates Safe Driving, Elon Musk Reacts

    Digicel reconnects Tongan users via satellite to rest of the world

    UNSW researchers take three-qubit in silicon system to over 90% accuracy

    Infinidium reveals world-first power generator data cooling system

    Twitter blocks Mexican billionaire, citing abusive behavior

    Pi Ventures raises Rs 300 crore in first close of second fund

    Protonn shuts its business, returns $9 million to investors

    Red Cross Cyberattack Compromised Personal Data of Over 515K 'Highly Vulnerable People'

    Hyundai, U.S. firm join hands for battery development

    Biden threatens 'cyber' response after Ukraine says computers wiped during attack

    Startups seek new definition in note to government

    S. Korean economy faces complicated downside risks: finance minister

    OTHER TECH NEWS

    ;