UpScalio, a Thrasio-style venture that invests in e-commerce brands, on Wednesday, said it has invested an undisclosed sum in high-end kitchen appliance start-up Hestia, the company said in a statement.
Thrasio is a US-based startup that acquires and upscales popular brands sold on Amazon.com Inc.'s marketplace.
Operated by Upscalio India Pvt Ltd, the e-commerce company said it aims to grow the kitchen appliance brand to Rs 50 crore annual revenue rate in the next two to three years. To achieve this, UpScalio said it will focus on brand-building initiatives, launching new markets and extending the product portfolio.
Established in 2018 by Nehal Shah, an ex-director at GE Healthcare, operated by Formands Appliances Pvt Ltd, Hestia manufactures high-end kitchen appliances. The brand offers products like cold-press juicers and vacuum blenders.
“Hestia is a culmination of Nehal’s innovation streak and his extensive experience in the health industry. The brand has shown immense commitment to providing the healthiest solutions to Indian consumers as the Indian consumer becomes more discerning about their lifestyle choices,” said Saaim Khan, co-Founder and COO, UpScalio in the statement.
The investment marks UpScalio’s fourth deal. It previously invested in Green Soul Ergonomics Polestar, and Trase.
Founded in April 2021, UpScalio provides funds to digital brands selling on ecommerce marketplaces like Amazon, Myntra, Flipkart and Nykaa. It manages key operations for them including multi-marketplace management, digital marketing, branding, logistics, sourcing, finance, and business operations.
The company was founded by a former consultant at McKinsey & Company Gautam Kshatriya; Saaim Khan, a former consultant at Bain & Company; and former marketing and growth executive at Purplle, Nitin Agarwal.
The company claims to scale the business for the digital brands by 5-10x, providing a full exit to the entrepreneurs over time. The company has built a team of 50 specialists across functions to facilitate the digital brands with scaling their businesses, with plans of doubling the team to 100 by end of the year.
This week, in an interview with VCCircle, CEO, Gautham Kshatriya said “We are open to businesses across e-retail, but we like businesses that are utility-oriented and functional in nature. We look at businesses that are less perception oriented. So, we would love to invest, as we have, in ergonomic chair brands such as Green Sole”.
“We would love to invest in a Trase kind of company, as it makes functional or orthopaedic footwear. Segments we are less interested in are fashion and beauty, because they are largely driven by consumer tastes and trends that change very quickly,” he added.
In August, UpScalio raised $42.5 million in a Series A funding round led by Presight Capital and an undisclosed global hedge fund.
In India, Mensa Brands, founded by former CEO of Myntra Ananth Narayanan, FirstCry-backed GlobalBees and Fireside backed 10Club, among others, have adopted a similar model.