The universe of Indian firms attempting to replicate Thrasio’s success in the world’s second largest internet market just got bigger. Three-month-old GlobalBees said on Monday it has raised $150 million in a Series A financing round led by FirstCry.
Lightspeed Venture Partners also invested in the new financing round, which is $75 million in equity and $75 million in debt. Even with a $75 million equity raise, Monday’s announcement makes GlobalBees’ round the largest Series A funding in India.
Founded by Nitin Agarwal, formerly of Edelweiss Financial, and Supam Maheshwari, a founder of FirstCry, GlobalBees acquires and partners with digitally native brands across categories such as beauty, personal care, home and kitchen, food and nutrition, and sports and lifestyle with a revenue rate of $1 million to $20 million.
The startup then helps these firms scale and sell to marketplaces and through other channels in India and outside the South Asian market, Agarwal told Fundingnewsasia in an interview. He said GlobalBees has already acquired or partnered with over a dozen brands and they are selling both in India and outside of the country.
“At FirstCry, we created a lot of brands and realized that most of these brands reach a scale after which it becomes too difficult to scale them,” he said. “Supam and I have been talking about this for several years, trying to find ways to disrupt this market. We think there’s an opportunity to create a new house of brands that is digital native.”
Agarwal said GlobalBees will attempt to build a distribution and enterprise ecosystem in the online space similar to how traditional firms have established those connections in the offline world. (Not all brands GlobalBees engages with will get acquired on day one, Agarwal said. Typically, some brands get acquired in a span of three years or so, he said.)
“The time it takes for D2C brands to go from 0 – 100Cr (about $13 million) in revenue has more than halved over the past few years,” said Harsha Kumar, Partner at Lightspeed Venture, in a statement. “We believe that this creates a unique opportunity to create a brand house much faster as well. With their past entrepreneurial stints together and their experience in building one of the largest ecommerce platforms in India, the duo of Supam and Nitin is the perfect team to go after this idea. Lightspeed is thrilled to be part of this journey!”
This is a developing story. More to follow…