Mensa Manufacturers, a startup based by former Myntra CEO Ananth Narayanan has raised near $50 million in collection A funding from Accel Companions, Falcon Edge Capital and Norwest Enterprise Companions. Angel buyers Kunal Shah, Mukesh Bansal, DST World’s Rahul Mehta and Scott Shleifer of Tiger World additionally participated within the monetary spherical.
The agency additionally secured debt financing from Alteria Capital and Innoven Capital, it mentioned in an announcement on Monday.
The corporate goals to deliver a cluster of manufacturers below its aegis and plans to companion and spend money on digital-first manufacturers. Mensa is seeking to purchase greater than 50 manufacturers throughout classes together with dwelling, backyard, attire, private care and wonder over the subsequent three years.
The idea is akin to the one adopted by US-based firm Thrasio. The corporate acquires third-party manufacturers that promote on Amazon and helps construct on their development.
“After acquisition, we will probably be utilizing expertise, product and our e-commerce experience to scale these manufacturers up. We’ll try to develop the manufacturers not simply in India however globally,” Narayanan advised FE. Mensa plans to amass mid-sized manufacturers that make anyplace between Rs 10 crore-Rs 70 crore in revenues yearly. “We would like them to be Ebitda worthwhile they usually have to be primarily on-line. So, greater than 70% of their revenues wants to come back on-line,” Narayanan mentioned.
“Why do founders come and work with us? They imagine their manufacturers can develop sooner working with us and in partnership with us. They get a monetary return upfront which is after we purchase the bulk, we pay them. They’ll proceed to revenue from the model even because the model grows,” Narayanan added.
Mensa, which desires to construct a “technology-led home of manufacturers for the e-commerce world” mentioned it would scale up the manufacturers by means of the appliance of development advertising and marketing, operational enchancment and dealing capital administration.
“With digital acceleration of commerce globally, this mannequin could be additive to the model house owners, the platforms and the shoppers and will thus scale quickly,” mentioned Subrata Mitra, Associate at Accel Companions.