Thrasio-style startup 10Club has acquired its first D2C brand My Newborn that sells baby care products including blankets and swaddles. The acquisition comes on the back of its $40 Mn fundraise — one of the largest seed rounds. The round was led by Fireside Ventures, HeyDay, PDS international, Class 5 Global, Secocha Ventures led by Sanket Parekh and others.
Founded in 2020 by Bhavna Suresh, Joel Ayala and Deepak Nair, 10Club partners with ecommerce product sellers in India by acquiring their businesses and working with their teams to help them grow 10x in size. The startup currently functions with a 20-people team that comprises people from companies such as Amazon, Flipkart, Udaan, Reliance and Coca Cola, among others.
Started four years ago by Abhishek Jain and Rakesh Jain, My Newborn addresses the need for good-quality baby care products such as blankets and swaddles etc. The D2C brand claims to have rapidly scaled its operations and was ranked second in the baby blanket category. In addition, it also claims that three of its products are among the top 10 on Amazon, and their products average a rating of 4.1, given by more than 40,000 customers.
“We have reached a stage where we needed financial, technical and expertise infusion to take the brand to the next level. 10Club, with its incredible expertise and vision, has turned out to be just the right growth partner that My NewBorn needed at this juncture,” Rakesh said.
The startup said it will focus on insights from consumer shopping behaviour and usage patterns to differentiate its products so that it can better serve the needs of the 150 Mn+ Indian households that form the core of its primary target audience.
Nair said, “At 10Club, we have set out to build high-velocity, digital-native brands by partnering with entrepreneurs who have built strong businesses on marketplaces and have the potential to become category leaders. Rakesh and Abhishek are new generation entrepreneurs who are extremely passionate, with a great understanding of the consumer and have been able to achieve a high growth trajectory for My NewBorn over the years.”
My NewBorn plans to launch new products in adjacent categories and leveraging customer insights to set them apart in the market. My NewBorn, along with 10Club, will improve the margin profile and ensure that their products are more affordable, valuable and easily available to the masses across India.
According to an Inc42 Plus report, India, until April 2021, has over 800 D2C brands and is expected to exceed a $200 Bn market valuation by 2026. Further, Bain & Company report suggests that the Indian ecommerce market will propel India’s online gross merchandise value to $100-$120 Bn in the next four years.
It’s not just 10Club eyeing a piece of this market; startups including Powerhouse91, Upscalio, Mensa, Global Bees, among others, also offer Thrasio-model service in the ecommerce segment.