Bengaluru-based start-up 10Club has recently risen to prominence and has taken center-stage as it has raised one of the largest ever funds among Indian start-ups. After raising $40 million, the start-up’s success is largely attributed to its innovative business model that builds on the recently infamous Thresio-style business model.
The inner workings of the Thracio-style model
Founded in 2018 by Carlos Cashman and Joshua Silberstein in Walpole, Massachusetts, Thracio is a digital consumer goods company that acquired other third-party private label Amazon FBA (Fulfillment by Amazon) businesses. The company operates through acquiring these businesses after which it onboards and optimizes the operations of these businesses. This is done in an effort to expand its reach through the market, product development as well as supply chain management. This in turn leads to the expansion of wholesale sales, improves financial growth and ultimately increases the business under the umbrella of the acquiring company.
The basic premise of 10Club’s Thariso-style model is quite simple when a company or a start-up for that matter acquires online brands that are themselves rapidly growing and innovative. These brands are then hosted or listed in a wide assortment of products and services through the company. In parallel, brands are given the capacity and ability to grow and develop their business through the company, which provides access to better technology, capital and marketing tools. 10Club has partnered with multiple e-commerce product sellers and distributors across India through acquisitions and continues to expand its reach.
10Club Attracts Investor’s Eye
The $40 million seed funding round was led by investment giant Fireside Ventures. Fireside has been known to endorse notable brands in the past. These include boAt earphones and Mamaearth to name a few.
Other investors who were part of the funding round include Secocha Ventures, PDS International a logistics industry player, Class 5 Global which is a US-based micro-VC firm. Interestingly, Joel Ayala, who co-founded 10 Club along with Deepak Nair and Bhawna Suresh, is also the co-founder of Class 5.
According to data provided by Crunchbase, Aman Gupta and Sameer Mehta are also investors in Thresio-model start-ups. Gupta is the co-founder and CMO of BOAT, while Mehta is the co-founder of BOAT.
According to a report in Moneycontrol, 10Club CEO, Suresh had revealed that the company will look at deals in the kitchen appliances sector as well as organisers, food and beverage, sports equipment and eyeglasses industries.
Thresio-style start-ups have taken the Indian venture capital sector by storm as more and more foreign investors eye start-ups that follow this innovative model.
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