The Super Chargers Of Growth
UpScalio came into existence in March 2021 and raised Series A funding of $42.5 million in July this year
If you give a man a fish, you feed him for a day. If you teach a man to fish, you feed him for a lifetime. The Thrasio model has become a platform that many startups are banking on. This podium is giving new players an idea that can change lives.
The concept is new to the Indian startup ecosystem but has gained significant momentum. Thrasio-model gigs thrive on brands that sell on Amazon. Under this, a startup collaborates and acquires Amazon sellers. Once it acquires, it upgrades the brand’s marketing, product development and supply chain management.
Taking a cue from this model, UpScalio--India's next-generation, digitally-led consumer goods company--was born in March 2021. UpScalio is a platform that invests in, grows and buys e-commerce businesses that sell on Amazon, Flipkart, other marketplaces and through their own websites.
Gautam Kshatriya, co-founder and CEO, UpScalio, said, "We invest in high-growth, digital-first brands and are committed to scale them to 5-10 times through capital assistance and operational excellence. Instead of building a business from scratch we acquire/partner with an established firm and help them reach new hieghts."
“We are digitally and analytically native. We focus on brands whose 95-99 per cent of revenue come from online. These brands should also have high ratings.Our trajectory includes consumer goods beyond the fast-moving sector. Now, brands do not have to bank on VC (venture capital) funding. We are there,” the CEO added.
Since its inception, UpScalio has acquired five companies. It is eyeing on acquiring another 10 companies in the home and utility space. The company currently stands at an annualized recurring revenue (ARR) of INR 200 crore. In July, the company raised $42.5 million in Series A funding.
Explaining the acquisition process, the CEO said, “The entrepreneurs we partner with understand that they have brought the brand to a certain level. Now, to rise further, they will not only need capital but also the required expertise. As a business grows, an entrepreneur needs to look at the capital, growing demand and the aspect of supply chain. We provide the brands with professionals who have deep expertise in specific fields. We have team A experts who help in key operations. We acquire and make the brands a supercharger of growth.”
Giving a reality check on the competition level based on the Thrasio model, he said, “From outside, it may look like there are a lot of players in the field but the reality is different. The selection parameter varies. Different companies are choosing different paths as a market.”
The brands that UpScalio plans to acquire has to have a minimum revenue. “We get excited if the brand is having an annual turnover of INR 15-20 crore.”
Talking about the basic parameters that UpScalio looks for, while choosing to partner with a brand, Kshatriya said, “We hunt for a company that shares our vision. It has to be honest and transparent. Secondly, the brand needs to have strong business fundamentals and thirdly, it is our belief of growth in the company that motivates us to invest in the brand.”