The Bengaluru-based start-up 10club has recently risen to prominence and has taken centre-stage as it has raised one of the highest seed funds amongst Indian start-ups to date. Having raised $40 million, the success of this start-up is largely attributed to its innovative business model that is based on the recently infamous Thrasio-style business model.
The Inner Workings of the Thrasio-style model
Founded in 2018 by Carlos Cashman and Joshua Silberstein in Walpole, Massachusetts, Thrasio is a digital consumer goods company that acquires other third-party private label Amazon FBA (fulfilment by Amazon) businesses. The company operates by way of acquiring these businesses after which it onboards and optimises the operations of these businesses. This is done in an attempt to expand their reach through the market, develop the product as well as the supply chain management. This in turn leads to the expansion of the wholesales, improvement in financial growth and ultimately scales up the business overall under the umbrella of the acquiring company.
The basic premise of 10club’s Thariso-style model is quite simple when a company or a start-up for that matter acquires online brands that are themselves fast-growing and innovative. These brands are then hosted or catalogued into a wide assortment of products and services through the company. Parallelly, the brands are given the room and ability to scale and grow their businesses through the company, which provides access to better technology, capital and marketing tools. 10club has partnered with several e-commerce product sellers and distributors across India by way of acquisitions and is steadily building its reach.
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10club Attracts the Investors’ Eye
The seed funding round of $40 million was led by investment giant Fireside Ventures. Fireside is known for its backing of notable brands in the past. These names include the likes of boAt earphones and Mamaearth to name a few.
Other investors who were a part of the funding round include Secocha Ventures, PDS International a logistics industry player, Class 5 Global which is a US-based micro-VC firm. Interestingly, Joel Ayala, who cofounded 10club with Deepak Nair and Bhavna Suresh, is a co-founder of Class 5 as well.
According to data provided by Crunchbase, Aman Gupta and Sameer Mehta are also investors in the Thrasio-model start-up. Gupta is a co-founder and CMO of boAt, while Mehta is a co-founder of boAt.
As per a report by Moneycontrol, CEO of 10club, Suresh, had revealed that the company would be looking at deals in the kitchen appliances sector as well as the organisers, food and beverages, sports equipment and spectacles industries going forward.
Thrasio-style start-ups have taken the Indian venture capital arena by storm as more and more foreign investors eye start-ups that are following this innovative model.