Indian e-commerce startup 10club has recently announced that it has raised USD 40 million as it continues to build a Thrasio-like venture, making this one of the largest seed funding rounds in South Asian market.
The funding round was jointly led by Fireside Ventures and an undisclosed global investor. The round also saw participation from PDS International, HeyDay, Secocha Ventures, Class 5 Global, and boAt founders.
For those unfamiliar, 10club buys small brands that sell their products on e-commerce platforms and amplifies those businesses.
Businesses are expanding due to e-commerce giants like Flipkart, Amazon, and more. They start with a strong foundation but struggle to level up and stand strong in the competition. That’s where 10club comes in and allows the entrepreneurs to benefit from the years of operation, describes the company’s LinkedIn page.
It is worth noting here that 10club is one of the few firms that are trying to replicate the popularly known Thrasio-model in India. Mensa Brands, a similar venture, recently raised USD 50 million in equity and debt. Also, it was recently reported that UpScale, another leading player in this space, is in discussions with Germany’s Razor Group to raise capital.
Like Thrasio, many such firms are attempting to acquire brands that sell midrange to premium products in categories with limited competition. Some of the common categories of these brands are so underrated that even many e-commerce firms like Amazon have not yet explored them through their private brand system, cited knowledgeable sources.
10club’s co-founder, Bhavna Suresh, mentioned that the startup has already laid the foundation of the centralized platform and signed agreements worth USD 15 million from various firms, and the company 10club will use the fresh capital to expand its portfolio and operate the new businesses.
Vinay Singh, partner at Fireside Ventures, will be joining 10club’s board as a part of the transaction.
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