Mensa Brands, a startup founded by former Myntra CEO Ananth Narayanan, has raised nearly $ 50 million in Series A funding from Accel Partners, Falcon Edge Capital and Norwest Venture Partners. Angel investors Kunal Shah, Mukesh Bansal, Rahul Mehta from DST Global and Scott Shleifer from Tiger Global also took part in the financial round.
The company has also secured debt financing from Alteria Capital and Innoven Capital, it said in a statement on Monday.
The company aims to bring a cluster of brands under its aegis and plans to partner and invest in digital-first brands. Mensa intends to acquire more than 50 brands in various categories such as home, garden, apparel, personal care and beauty over the next three years.
The concept is similar to that of the US company Thrasio. The company acquires third-party brands that sell on Amazon and helps build on their growth.
“After the acquisition, we will use technology, products and our e-commerce expertise to grow these brands. We will try to expand the brands not only in India but worldwide, ”Narayanan told FE. Mensa plans to acquire medium sized brands that have annual sales between 10 and 70 rupees. “We want them to be Ebitda profitable and primarily online. Therefore, more than 70% of their income has to be generated online, ”said Narayanan.
“Why do founders come and work for us? They believe that by working with us and in partnership with us, their brands can grow faster. You will receive an upfront financial return. If we buy the majority, we pay them. You can still benefit from the brand as the brand grows, ”added Narayanan.
Mensa, which aims to build a “technology-driven brand house for the e-commerce world,” said it will scale brands through the use of growth marketing, operational improvement and working capital management.
“With the digital acceleration of commerce around the world, this model would add to the brand owners, platforms and consumers and should scale quickly,” said Subrata Mitra, partner at Accel Partners.