E-commerce rollup Evenflow has partnered with logistics startup Shiprocket to solve the supply chain at scale for the sellers that Evenflow acquires.
Founded by former Uber executives Utsav Agarwal & Pulkit Chhabra in 2021, Evenflow aggregates third-party sellers on e-commerce platforms like Amazon & Flipkart. It acquires online marketplace sellers in the range of $200k - $1.5 million per brand.
Shiprocket is an AI-backed logistics platform that enables D2C sellers to deliver an unmatchable customer experience. To ease shipping, the brand aggregates leading courier partners on a single platform that helps sellers choose and compare all shipping options.
Shiprocket also offers other value-added technology services that the merchants avail, such as warehousing and fulfilments, packaging, revenue-based financing, etc.
"Supply chain is the backbone for all e-commerce businesses. Shiprocket has positioned itself as a pioneer in fulfilment and last-mile logistics. We are extremely excited to partner with them to bring the best practices from the industry to all the businesses we partner and work with. Shiprocket has created scalable solutions for the third-party seller ecosystem. We are bullish on leveraging them to support multiple brands under our portfolio," said Utsav Agarwal, co-founder & CEO, Evenflow.
Speaking on the partnership Mr. Vishesh Khurana, Co-founder, Shiprocket, said, "With our collaboration with Evenflow, we aim to strategically focus on reducing the risks involved in supply chain and work together to drive this common objective. Evenflow is known to help businesses reach their full potential & Shiprocket looks forward to supporting them in this endeavor."
Unlike other Thrasio- style rollups focusing 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 third-party e-commerce sellers with attractive product portfolios and aims to establish them as solid 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, third-party sellers on Amazon crossed $300 bn in GMV & are expected to reach $650 bn in GMV by 2025. While they have good product portfolios, they do not have the expertise and capital to scale, where e-commerce aggregators become enablers.