In a significant development for the Indian direct-to-consumer brand aggregator space, Goat Brand Labs has raised $50 million in fresh funding. This latest round of financing comes on the heels of the startup’s previous $36 million funding last year and is expected to help the company acquire more premium brands and scale them globally.
Investors Join Forces with Goat Brand Labs
The Series A funding for Goat Brand Labs was led by Winter Capital, Vivriti Capital, 9Unicorns, Venture Catalysts, and Oxyzo. Interestingly, this round also includes some capital that has been raised as debt. The new investors join a list of existing investors who participated in the previous round, including Tiger Global, Flipkart Ventures, Mayfield, and Better Capital.
Goat Brand Labs: A Pioneer in Direct-to-Consumer Brand Aggregation
Founded by Rishi Vasudev, a former Flipkart executive, and Rameswar Misra, who previously founded menswear brand Turms and served as senior vice president of women-focused apparel e-commerce marketplace Voonik, Goat Brand Labs operates in the same space as Thrasio, a Boston-based startup widely credited with the success of this model. Goat Brand Lab’s mission is to acquire lifestyle brands that have a strong consumer connect, Instagram following, direct sales through their own websites or platforms like Shopify, Myntra, and Ajio.
Acquiring Premium Brands: A Key Focus for Goat Brand Labs
According to Vasudev, the startup typically acquires brands that are clocking an annual revenue in the range of $2 million to $10 million. These brands often have a strong presence on social media platforms like Instagram and their own e-commerce websites or platforms. Goat Brand Lab’s team brings operational expertise in the lifestyle category and helps these acquired brands grow two to three times in a year while also turning them profitable.
Previous Acquisitions: A Testament to Goat Brand Labs’ Success
In the past year of its operation, Goat Brand Labs has successfully acquired 15 brands. These include celebrity-styled Label Life, fashion jewelry brand Voylla, Indian wear trueBrowns & Abhishti, children’s wear Frangipani, and beauty and skin care platforms Neemli and Nutriglow. With the fresh funding in hand, the startup plans to deploy these funds to acquire several more premium brands.
Advanced Discussions with 12 Brands Currently
As per Goat Brand Lab’s statement, it is currently in advanced discussions with 12 brands. The startup believes that this acquisition strategy will not only help them grow their portfolio but also provide a platform for these acquired brands to scale globally.
A Competitive Landscape: Indian Startups Emerge as Challengers
Scores of entrepreneurs are attempting to find better e-commerce models across the globe. Many investors believe that the Amazons and Flipkarts of the world have laid the rails for digital commerce, but smarter and more profitable businesses can be built atop of them. Other startups operating in the space in India include Mensa, Global Bees, EvenFlow Brands, 10club, and Powerhouse91.
Conclusion
Goat Brand Labs’ $50 million funding is a testament to the potential of direct-to-consumer brand aggregation as an e-commerce model. With its focus on acquiring premium brands, operational expertise in the lifestyle category, and plans to scale these acquired brands globally, Goat Brand Lab’s is set to revolutionize the Indian e-commerce industry.
About the Author
Manish Singh is a senior reporter at TechCrunch, covering India’s startup scene and venture capital investments. He also reports on global tech firms’ India play. Before joining TechCrunch, Manish was a business journalist with several prominent publications in India. His coverage of startups and technology has been widely followed by industry leaders and entrepreneurs alike.
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