Evenflow, Thrasio style e-commerce roll-up, made its first acquisition BabyPro in June 2021, an e-commerce online business in the babycare category, under the niche category baby proofing.
BabyPro is a brand that makes homes safe for kids by preventing accidents and injuries. It deals with baby-proofing products like corner guards, edge guards, socket covers, child locks, and others.
The founder of BabyPro, Rachita Agarwal is the only certified baby-proofer in India and has baby-proofed celebrity homes from the likes of Shilpa Shetty to Soha Ali Khan among others. Rachita has been paid an upfront amount and shall also get paid a percentage of the revenue the brand makes for two years. She is also joining Evenflow as a full-time employee.
BabyPro has clocked a 4x growth since June and has grown from a rank of 92 to the top 4 in the babycare category on Amazon. Two new products, potty seats, and dry sheets have also been launched under the brand and have already started clocking sales. It has also been launched on Flipkart and in talks with other platforms to create touchpoints across the digital ecosystem.
Co-founder & CEO, Utsav Agarwal, Evenflow says, “We identified a nascent market and went after it - the way the daily run rate for the brand is going, we’re certain it wouldn’t take much time for us to be a key player in not just baby proofing but the overall babycare category. Over the next three years, we seek to acquire 80-100 such sellers. To see the entire life cycle come through for Babypro has helped us solidify our playbooks for other sellers we acquire. As Evenflow, we want to establish brands in categories within which consumers still do not have as many options - like home & kitchen, babycare, sports & fitness and others.”
Jyotsana Singh, founding member and head of marketing at Evenflow says, “We don’t just want to build businesses, we want to build brands. Rebranding and scaling BabyPro along with Rachita was a gratifying experience. We have done the end to end execution in-house, from rebranding to paid advertising and launching two new products under it, all in 90 days. Acquisition is just one part of the business, how we scale and turn around sellers in record time will define this model.”
Unlike other Thrasio- style rollups who are focussing on D2C brands, Evenflow is heavily focused on third-party sellers on marketplaces and acquires them at EBITDA multiples, not revenue multiples. Evenflow has been acquiring e-commerce third-party sellers with interesting product portfolios and aims to establish them as strong brands across multiple categories in e-commerce.
The sheer width of sellers across different categories is massive and is only growing year on year. In 2020, over 700,000 sellers signed up on Amazon India, making it the highest among any Amazon marketplace globally. Also, globally, 3rd party sellers on Amazon crossed $300 bn in GMV & are expected to reach $650 bn in GMV by 2025. They have good product portfolios, however, do not have the expertise and capital to scale, which is where e-commerce aggregators come in as enablers.