SUMMARY
Founders must decide whether it's the right time to continue, and secure funding at a potentially lower valuation, or to pursue an exit, said Rishubh Satiya
Startup cofounders looking to raise funds at a higher valuation should think on the lines of VCs as to whether they have the capacity to increase their valuation 4X, added Satiya
India’s D2C startup ecosystem, which is home to 50K digital-first brands, has seen rapid consolidation in the past one year, with investors placing their bets on potential exits
The D2C startup ecosystem has been thriving in recent years, boasting of over 50K digital-first brands. In this rapidly evolving landscape, consolidations are becoming increasingly inevitable, with investors placing their bets on potential exit opportunities. When it comes to acquisition, timing is the most crucial factor, according to Rishubh Satiya, the cofounder of D2C nutrition brand Plix, which was acquired by Marico.
Satiya emphasised the significance of timing, saying, “I’ve witnessed this scenario frequently. People tend to underestimate their current situation. You need to discern when it’s the right moment to exit and when it’s best to stay and reserve the option to exit.”
He shared these insights during a panel discussion on “The BIG Exit – How D2C Brands Can Develop an Exit Strategy” at the fourth edition of Inc42’s D2C Summit 2023. The session was hosted by Angshuman Bhattacharya, national leader of consumer products & retail sector at EY India. Joining Satiya on the panel were Pranav Malhotra, founder of Trunativ; Prabhkiran Singh, CEO and cofounder of Bewakoof; and Mohit Sadaani, cofounder of The Moms Co.
Satiya said founders often prefer to raise funds at a higher valuation rather than pursuing an exit. However, during such moments, they should reflect on whether they have the capacity to increase their valuation from ‘X’ to ‘3X’ or ‘4X’, as venture capitalists would anticipate. Therefore, once again, timing plays a critical role.
Founders must decide whether it’s the right time to stay invested, secure funding at a potentially lower valuation to allow the team to focus less on metrics and grow at their own pace, or to pursue an exit and find comfort in that decision.
Established in 2020 by Satiya and Akash Zaveri, Plix is a Mumbai-based D2C startup that offers a diverse range of plant-based nutrition products, including workout supplements, ingestible sunscreens, hair growth serums, and skincare items.
In July 2023, Marico, a leading FMCG company, acquired Plix, marking a strategic move to expand its presence in the nutrition segment and enhance its position in the health and wellness category. The plant-based D2C brand now plans to leverage Marico’s extensive resources to strengthen its offline presence over the coming years.
Earlier, Plix secured $5 Mn in its Series A funding round from Guild Capital and RPSG Ventures in December 2021. Since its inception, the startup has consistently increased its turnover. In the financial year 2019-20, it reported a turnover of INR 10.92 Cr, which surged to INR 41.58 Cr in FY21. The company closed FY22 with a turnover of INR 106 Cr.
Competing with brands like OZiva, Setu Nutrition, and Fast&Up, Plix offered more than 60 SKUs across six categories at the start of the year. These products were available through the company’s website, ecommerce platforms, and physical stores, catering to over 1.5 Mn customers nationwide.
