My NewBorn, an eCommerce online business in the baby products category, is the first acquisition for Thrasio-style venture 10club. In June, 10club raised $40 million, making it one of the largest seed rounds in India.
According to Bhavna Suresh, cofounder of 10club, as part of the acquisition, My NewBorn founders Rakesh and Abhishek Jain will join 10club as entrepreneurs in residence for a minimum of 24 months. The founders will be paid in advance, and their entire team of 13 will join 10club, she added.
They will also receive a percentage of the cash flow and profits generated by the business after the acquisition for a five-year period.
“We are announcing our first acquisition, but we are very soon going to announce others. We are already operating a bunch of them,” she said.
10club, founded last year by former Lamudi CEO Suresh, 22feet co-founder Deepak Nair, and Class 5 Global co-founder Joel Ayala, acquires and accelerates the growth of ecommerce merchants who have built sustainable businesses on marketplaces such as Amazon and Flipkart.
It specialises in sports, home accessories, and baby and pet supplies. According to the company, My NewBorn is one of the top sellers in the category on Amazon India.
To expand its product portfolio, the 10club team will use insights from the brand's consumer purchasing and usage patterns.
Suresh stated that the company has acquired several other businesses and is in the process of integrating them into 10club, which typically takes 60 days.
Fireside Ventures-backed startup is on track to acquire 15-20 businesses in the near future.
“Every business that we look at today approximately grows at 60-70% year on year. So, they have found the traction and the product-market-fit. Generally, what's missing is they have not found a brand proposition, they have not started creating a community, and that stickiness has not started. 10club usually comes in at this intersection,” Suresh said.
Suresh stated that the four-year-old brand will be scaled up by up to 20 times its current annual revenue run rate.
The brand has been launched on five online channels, including Flipkart, FirstCry, and Meesho's direct selling platform, in the last 60 days of its operation as part of 10club.
10club intends to take these ventures directly to consumers after scaling businesses on online marketplaces and assisting brands in building strong communities.
