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Is Indian Touch Needed To The Thrasio Model?

Are You Aware Of The Thrasio Model?

Thrasio Inc is founded by Joshua Silberstein & Carlos Cashman in 2018, which flourished on brands that were top-selling on Amazon.

How does this model work? The company discovers best-selling products, which are daily needs of consumers, on Amazon.
After that, the company buys those brands from small business owners for more than $1 mln. After the acquisition, it then works to optimize the brands by upgrading its product development, marketing, supply chain management, pricing, & many more strategies.

Ken Kubec from the Thrasio team highlighted that the company starts with a broader research perspective & narrows it down to their R Cubed Method (Reviews, Rating, & Rank).

-Minimum 500 mostly positive reviews
-Average rating of 4 stars or more
-Competitive search rank in their niche
These metrics are checked if they are honest & organic, & not gamed or won with using misleading ways.

According to the Bloomberg report, this unicorn start-up had been valued at $3 bln in February 2021, & in a month post that it increased to $3.5 bln. Because of Thrasio, several online startups have started to gain funding secretly.

What about Thrasio Model in India?

This concept is relatively new in the Indian start-up ecosystem but has gained much popularity in the last three months. Over a dozen start-ups inspired by this model have attracted a lot of traction from equity and debt investors.

And a list of ongoing such Thariso models are as follows:

>Ananth Narayanan\’s Mensa brand invests in ‘Digital-First’ brands. In its second-round funding, it raised $33 mln from existing investors.
>Curefit founder Ankit Narogi is reportedly in talks to raise INR 100 Cr to fund online food brands listed on platforms like Swiggy & Zomato.
>GlobalBees rose $150 mln in Series A funding to build a house of brands.
>UpSaclio rose $42.5 mln in Series A funding.
>Bhavna Suresh, co-founder & CEO of 10Club, also said that they had raised $40 mln. 10club acquires, operates & grows e-commerce first businesses.

India\’s market is quite different from the US market. It has its own set of challenges and opportunities.

As said by Kapil Makhija, CEO, Unicommerce – \”The Thrasio style model in India cannot just be the complete replication of the US counterpart, as both countries\’ consumer behavior, market, and ecosystem are quite different. The US-based companies worked on the model of acquiring brands with the Amazon Third Party Seller (\’TPS\’) ecosystem. However, India\’s TPS ecosystem is not that evolved, and there are a limited number of sellers with high sales volume.\” As the Indian market evolves, maybe this model is followed and small-scale businesses grow.

However, most of these investments in India are driven by the expectation of a growing market, which means that money raised is based on promises and a solid pitch.

Let’s see if the Thrasio model suffices in the Indian market.

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