10club was
Raised $40 million – one of the largest seed rounds in India – in June.
Bhavna Suresh, co-founder of 10Club, told ET that as part of the acquisition, My Newborn founders Rakesh and Abhishek Jain will join 10Club as entrepreneurs for at least 24 months.
He said that the founders would be paid a certain amount in advance and their entire team of 13 would join the 10 club.
They will also receive a percentage of the cash flows and profits from the post-acquisition business for a period of five years.
“We are announcing our first acquisition, but we are going to announce others soon. We are already operating a group of them,” she said, refusing to divulge details.
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Founded last year by former Lamudi CEO Suresh, 22ft co-founder Deepak Nair and Class 5 Global co-founder Joel Ayala, 10 Club acquired ecommerce merchants who have built sustainable businesses on ecommerce marketplaces such as Amazon and Flipkart and accelerate their development.
It focuses on sports, household items, and the baby and pet category.
The company said that My Newborn is one of the top sellers in the category on Amazon India’s marketplace.
The 10 Club team will use insights from the brand’s consumer buying behavior and usage patterns to expand its product portfolio.
Suresh said the company has acquired several other businesses and is in the process of integrating them – which usually takes 60 days – into 10clubs.
NS start upBacked by Fireside Ventures, is on track to acquire 15-20 businesses in the near future.
“Every business we see today grows about 60-70% year over year. So, they have found traction and product-market-fit. Generally, what they lack is that they don’t have a brand. The offer hasn’t been received, they haven’t started building a community, and that stickiness hasn’t started. The 10 club usually comes at this crossroads,” Suresh said.
“…
The Thracio-style play is modeled after the US-based company Thracio Holdings Inc., which acquired and scaled brands in Amazon’s marketplace.
In India, this model has recently gained steam.
This Year Alone, Founder of FirstCry
Supam Maheshwari launched GlobalBeesAnanth Narayanan, former CEO of Myntra,
Mensa Brands Launched, and launched by Rishi Vasudev, former Flipkart executive
Goat Brand Labs, in this space.
These startups are backed by investors including SoftBank, Falcon Edge Capital, the venture arm of Flipkart and Tiger Global.
Suresh said she will grow the four-year-old brand to 20 times their current annual revenue run rate.
In the last 60 days of its operation as part of 10 Club, the brand has been launched across five online channels including the direct selling platforms of Flipkart, Firstcry and Meesho.
After helping brands grow businesses and build strong communities on the online marketplace, 10Club plans to take these ventures straight to the consumers.