Direct-to-consumer (D2C) brand aggregator Goat Brand Labs has acquired home and lifestyle brand Chumbak for an undisclosed amount. The company has also bought four more brands, which will be disclosed in the coming days, it said in a statement on Thursday.
Rishi Vasude, co-founder and chief executive of Goat Brand, said in an interview that the other acquisitions are in the fashion and beauty business. He declined to elaborate.
Vasude said the founders of Chumbak will continue to run and scale the brand.
The deal saw the exit of existing investors of Chumbak--Matrix Partners, Gaja Capital, and SeedFund.
A person aware of the matter said Goat Brand has acquired up a 77% stake in Chumbak and that it typically buys brands at 1-1.5 multiples.
The latest buyout has expanded Tiger Global-backed Goat Brand’s portfolio to 20 brands. The company aims to grow Chumbak into a ₹500 crore brand in the next three years.
Chumbak was founded by Vivek Prabhakar and Shubhra Chadda in 2010. It runs retail stores in shopping centres and offers products such as culturally-inspired cups, plates, purses, watches, home decor items, and other accessories.
“This partnership is the perfect recipe to grow the brand exponentially by expanding its global reach, both online and offline, through a tech and data-driven approach,” said Vasudev in a statement.
Last year, Goat Brand acquired multiple D2C brands including The Label Life, a celebrity-styled brand, and trueBrowns, a premium ethnic wear brand. According to Goat Brand, both the brands have grown tenfold since their partnership. The addition of the five new brands is aimed at further strengthening the company’s portfolio of fast-growing fashion and lifestyle brands.
Goat Brand also counts Flipkart, Mayfield, Winter Capital, Nordstar, and Better Capital among its backers.
The company had raised $50 million in a fundraising round in June last year. Prior to this, it had raised $36 million in July 2021.
Goat Brand follows a model similar to that of US-based Thrasio, which acquires third-party private label brands on Amazon. Apart from Goat Brand, other Indian companies which adopted the Thrasio-style business model category and raised significant venture capital funding last year include FirstCry-backed GlobalBees and Powerhouse91, 10club and Evenflow.
