Bengaluru: Goat Brand Labs, a Thrasio-style venture of former Flipkart executive Rishi Vasudev, has closed a $36-million funding round, including a debt component, amid a rush of capital that has flowed into such startups this year.
The financing was led by New York-based investment firm Tiger Global and saw participation of Flipkart Ventures, US-based Mayfield, Nordstar Capital and Better Capital. Prominent angel investors—including Sujeet Kumar of Udaan, Virender Gupta of DailyHunt, and Ranjan Pai of Manipal Group—also participated in this round.
Goat Brand has raised $18 million in equity capital while the rest of it is in debt, said people aware of the matter. Rameswar Misra, who had previously started an apparel company called Turmswear, has joined Vasudev as a cofounder in this venture.
ET had first reported about this deal in its May 17 edition.
Vasudev is a veteran fashion retail executive who previously headed the fashion business of Flipkart.
Goat Brand Labs is expected to acquire lifestyle brands and help them grow online, similar to Thrasio. The US-based company is the world’s largest acquirer of third-party private label businesses on Amazon.com.
Vasudev told ET he is looking to partner with early-stage brands in the lifestyle and beauty category with sales of around $1-3 million. “We will look to buy a majority stake and partner with them and enable them to scale up with our expertise,” he said.
According to him, Goat Brand Labs will fuel exponential growth of direct-to-consumer (D2C) brands across all channels—marketplaces, a brand’s e-commerce platforms, offline retail and global markets—by “providing them a tech-enabled platform for end-to-end integration replete with deep digital marketing expertise”.
Goat Brand Labs is among the new ventures like Mensa Brands, 10Club and GlobalBees, all of which have raised big financing rounds. Mensa Brands and GlobalBees have raised $50 million and $150 million, respectively, through a mix of equity and debt, while 10Club has raised $40 million in one of the largest seed funding rounds in India.
“The potential of the D2C market in India will only continue to grow and Goat Brand Labs is well positioned to effectively tap this, while helping brands scale, said Scott Shleifer, partner at Tiger Global.