Roll-up ecommerce startup UpScalio has invested in Autofurnish, which operates four online-first auto-accessories brands—Autofurnish, Destorm, Urban Lifestylers and MotoTrance.
Founded in 2012 by Puneet Arora, Ruppal Wadhwa, and Chakit Khattar, these four brands sell car foot mats, car body covers, bike body covers and sell their products on Amazon and Flipkart.
UpScalio aims to scale up the brands’ presence by opening opportunities with new marketplaces, vertical channels and partnerships with auto enthusiast communities while leveraging their D2C brand websites. It aims to scale the brands to an annual recurring revenue of INR 100 Cr.
“The category has a committed customer base and has incredible growth potential. All four brands have successfully used variety and customisation to grow. Scaling them will require a dynamic mix of product expansion, customer engagement, and key partnerships to solidify their leadership position. The founders have built much-loved brands and we’re thrilled to partner with them to grow them exponentially,” said Gautam Kshatriya, co-founder and CEO of UpScalio.
The global market for auto parts and accessories was estimated at $1.9 Tn in the year 2020 and is projected to reach the size of $2.3 Tn by 2026, growing at a CAGR of 3% during the period. According to analyses, the interiors and exteriors segment is expected to grow at a CAGR of 2.8%.
“We cater to customers who are passionate about their vehicles and we needed to partner with someone who understands the human side of this business. UpScalio’s obsession with customer experience impressed us in that regard,” said Puneet Arora, co-founder and CEO of Autofurnish.
Last month, NCR-based UpScalio made its fourth investment in the high-end kitchen appliances sector with an investment in Hestia. The startup has also previously invested in D2C furniture brand Green Soul Ergonomics, travel bags startup Polestar, and footwear brand Trase.
UpScalio is one of the many Indian startups that acquire and scale fast-growing digital brands, just like US-based Thrasio that pioneered the concept and is set for an India expansion after earmarking $1 Bn for acquisitions in the country.
Other startups following a similar business model in the country include Globalbees, Mensa Brands, Evenflow, Powerhouse91, CureFoods etc. Founded by Gautam Kshatriya, Saaim Khan, and Nitin Agarwal earlier this year, UpScalio claims to be working on acquiring and scaling business with 5-10X growth over the next few years.
Thrasio-style venture Mensa Brands has become the fastest entrant to the celebrated unicorn club last month. The 2021 founded startup had achieved the $1 Bn valuation after raising $135 Mn in its Series B round led by Alpha Wave Ventures, Falcon Edge Capital in participation.
The Thrasio model is named after Massachusetts-based startup Thrasio which is at present valued in the range between $3 Bn – $4 Bn within three years of operation. The ecommerce company started consolidating third-party sellers on Amazon in the US and helped them to scale further. You can listen to Thrasio cofounder Carlos Cashman speaking to Inc42 here.