GlobalBees Raises $150M to Build Thrasio-like House of Brands in India

GlobalBees Secures $150 Million in Series A Funding

The competitive landscape for Indian companies aiming to emulate Thrasio’s success within the world’s second-largest internet market has expanded. GlobalBees, established just three months ago, announced on Monday a $150 million Series A financing round, spearheaded by FirstCry.

Funding Details and Significance

The financing incorporates $75 million in equity and $75 million in debt, with Lightspeed Venture Partners also participating. This funding round represents the largest Series A investment to date within India.

Founders and Acquisition Strategy

GlobalBees was founded by Nitin Agarwal, previously with Edelweiss Financial, and Supam Maheshwari, a co-founder of FirstCry. The company focuses on acquiring and collaborating with digitally-native brands.

These brands operate within diverse categories, including beauty, personal care, home goods, kitchenware, food, nutrition, sports, and lifestyle products, generating between $1 million and $20 million in annual revenue.

Scaling and Market Expansion

Based in New Delhi, the startup assists these businesses in expanding their reach and sales through various channels. This includes major marketplaces like Amazon and Flipkart, as well as direct-to-consumer avenues both within India and internationally, as Agarwal explained to TechCrunch.

GlobalBees has already secured partnerships with, or acquired, over a dozen brands, facilitating sales both domestically and abroad.

Addressing Scaling Challenges for D2C Brands

“Past experience revealed that many brands encounter difficulties scaling beyond a certain point,” Agarwal stated. “Supam and I have long discussed methods to disrupt this market, believing there’s an opportunity to establish a new, digitally-focused house of brands.”

Building a Digital Distribution Ecosystem

Agarwal envisions GlobalBees constructing a distribution and enterprise ecosystem online, mirroring the established connections traditional companies have cultivated offline. Not all engagements will immediately result in acquisitions; some brands may be acquired over a period of approximately three years.

Market Opportunity and Growth Potential

Harsha Kumar, a partner at Lightspeed Venture, commented, “The timeframe for direct-to-consumer (D2C) brands to achieve $13 million (100Cr) in revenue has been significantly reduced in recent years.”

“This creates a unique opportunity to rapidly build a brand house. Supam and Nitin’s combined entrepreneurial background and experience in building a leading Indian e-commerce platform make them ideally suited for this venture. Lightspeed is excited to be involved!” Kumar will be joining the GlobalBees board.

The Rise of the Thrasio Model in India

Numerous startups in India are currently pursuing strategies similar to the Thrasio model. Titan Capital, with investments in around 200 Indian startups, has invested in Powerhouse91.

Mensa Brands, founded by a former Myntra CEO, recently secured $50 million in equity and debt. 10club, another competitor, raised $40 million, largely through debt financing. TechCrunch reported that UpScale is in advanced discussions with Germany’s Razor Group to secure additional capital.

Focus on Niche and Underserved Categories

Similar to Thrasio, these companies are targeting brands offering mid-range to high-end products in categories with limited competition. Some of these categories are relatively unexplored, even by major e-commerce platforms like Amazon, through their private label initiatives.

Agarwal acknowledged this assessment, noting that not all brands operate within highly specialized niches.

Thrasio’s Global Expansion

Thrasio, headquartered in New York, has raised over $1.3 billion in equity and debt since December of last year and had consolidated approximately 6,000 Amazon third-party sellers as of earlier this year.

The Potential of the Indian D2C Market

“India is poised for a direct-to-consumer revolution, with an estimated market size of $200 billion within the next five years,” stated Vikas Agnihotri, operating partner at SoftBank Investment Advisers.

“Indian brands have demonstrated significant potential, and we believe GlobalBees is building valuable assets to accelerate the growth of digitally native brands in the country.”

Board Appointments

Agnihotri, along with Atul Gupta of Premji Invest, Sudhir Sethi of Chiratae Ventures, and Kshitij Sheth of Chrys Capital, will also be joining the GlobalBees board.