Furniture Ecommerce Startup Green Soul Secures Funds From Thrasio-Styled UpScalio

UpScalio, a Gurugram-based ‘Thrasio-style’ startup, has invested in ergonomic furniture D2C brand Green Soul, marking the former’s entry into the lucrative ergonomic furniture market. 

Green Souls sells office and gaming chairs, adjustable desks, leg rest stools and other accessories on Amazon, Flipkart and other platforms, including their own website. The company is highly rated on both of the mentioned platforms. 

On Amazon, 96% of the 767 reviews received by Green Soul are positive, giving it a 4+ star rating. On Flipkart, Green Soul has been given a product quality seller score of 4.6. It also sold more than 100,000 chairs in the last twelve months. 

“It’s time to pass on this baton of exponential growth to a world-class team with a portfolio of high-quality eCommerce experts,” said Ravi Khushwani, founder of Green Soul.

According to Inc42 Plus’s 2021 D2C report, eCommerce is expected to capture 11.4% of the Indian retail market and grow to reach $200 Bn by 2026. Green Soul will face stiff competition from D2C furniture brands like Urban Ladder and Pepperfry, both of whom offer a wide range of products. 

Last year, Indian giant Reliance Retail acquired a majority stake in Urban Ladder for INR 182 Cr. Mumbai-based Pepperfry has been tweaking its product and strategy ahead of plans for an IPO. 

UpScalio is one of the many Indian startups that acquire and scale fast-growing digital brands, just like Thrasio, the US-based company that pioneered the concept. Hence the moniker ‘Thrasio-style’. Other companies with a similar business model in the country include Globalbees, Mensa Brands, Evenflow, Powerhouse91 and others. 

The startup had raised $42.5 Mn in Series A funding earlier this year

Thrasio-style startups are trying to tap into this eCommerce boom by providing lucrative exit strategies for the people behind successful eCommerce brands, taking over the brand and scaling up its operations. In some instances, the founders continue to receive shares of profits after their business has been acquired.

One of the biggest challenges for brands that are successful on eCommerce platforms, are the platforms themselves. According to a  Reuters report, Amazon exploited its vast trove of internal data to create knock-offs of successful products and rig search results to give an unfair advantage to these products.

Another Thrasio-style platform Globalbees had raised $150 Mn in Series A funding in July this year, with plans to invest in 20-40 D2C brands. Since D2C brands control their own sales experience, they are relatively immune to the shenanigans from eCommerce platforms. While Globalbees acquired two brands this year; Mensa Brands has acquired majority stakes in 10 D2C startups. 

Thrasio themselves have earmarked $500 Mn for a foray into the Indian market and has already completed its first local acquisition: Lifelong Online which offers products across the kitchen, grooming and lifestyle categories.