The universe of Indian firms trying to replicate Thresio’s success in the world’s second largest internet market just got bigger. Three-month-old GlobalBiz said on Monday it has raised $150 million in a Series A funding round led by FirstCry.
Lightspeed Venture Partners has also invested in a new financing round, which brings in $75 million in equity and $75 million in debt. Even with an equity raise of $75 million, Monday’s announcement makes GlobalBiz’s round the largest Series A funding round in India.
Founded by Nitin Agarwal, formerly of Edelweiss Financial, and Supam Maheshwari, founder of FirstCry, GlobalBiz has digitally acquired and partnered native brands across categories such as beauty, personal care, home & kitchen, food & nutrition, and sports & lifestyle . Revenue rate of $1 million to $20 million.
Agarwal told ClearTips in an interview that the startup helps these firms sell and sell through markets and other channels in India and outside the South Asian market. He added that GlobalBees has already acquired or partnered with over a dozen brands and they are selling both in India and outside the country.
“At Firstcry, we created a lot of brands and realized that most of these brands reach a scale after which it becomes very difficult to measure them,” he said. “Supam and I have been talking about this for years, trying to find ways to disrupt this market. We think there is an opportunity to create a new home for digital native brands.”
Agarwal said that GlobalBiz will strive to build a distribution and enterprise ecosystem in the online space, similar to the way traditional firms have established those connections in the offline world. (Not all brands associated with GlobalBiz will be acquired on day one, Agarwal said. Typically, some brands are acquired over a period of three years or more, he said.)
“The time taken for D2C brands to generate revenue from 0-100 crores (approximately $13 million) has halved over the years,” Harsh Kumar, Partner, Lightspeed Ventures, said in a statement. “We believe this also creates a unique opportunity to build a brand house. Together with their past entrepreneurial stints and their experience in building one of the largest ecommerce platforms in India, the duo of Supam and Nitin The perfect team to take the idea forward. Lightspeed is thrilled to be a part of this journey!”
This is a developing story. More to follow…