When Utsav Agarwal heard about the US-based Thrasio business model in 2019, he decided to venture into this space.
Thrasio – valued at $ 4 billion in just three years – acquires sellers on Amazon and other Direct-to-Consumer (D2C) startups and evolves them.
In 2020, Utsav, a former Uber employee and Silicon Valley-based VC, started working on the idea. He spoke to 100 to 150 salespeople to understand their weak points.
“After a while these guys need someone to help them grow their brand because most of these founders are very good at a particular aspect of the business like marketing or the product but after that , they don’t know how to further develop the brand. ”, Utsav Agarwal, co-founder and CEO,, recount Your story.
Pulkit Chhabra, who previously handled the expansion to We work, integrated as the second co-founder. He is also Vice President – Acquisitions at EvenFlow.
The Mumbai-based startup – founded in March 2021 – acquires online sellers of pet and baby care, sportswear and kitchen utilities, among other product categories. He avoids categories like fashion, clothing, and electronics because they need brand recognition to sell.
“We mainly focus on online sellers rather than direct-to-consumer (D2C) startups. A D2C player is trying to build a brand and wants people to come to their website and learn about their products and purchases, while a digital seller is looking to increase their revenue and bottom line, ”Utsav explains.
Evenflow targets brands making between $ 100,000 and $ 1 million in revenue. He prefers to acquire a 100 percent stake in the company from an online seller and does not trade less than 51 percent. “To be fully involved, you need full participation,” he says.
After the acquisition, the startup takes on the founders to stay with the EvenFlow team for three to six months to help with the transition, after which they can leave.
“There are many types of sellers online. An old man will sell from Surat, a lady from Coimbatore and another working businessman from Jalandhar. If our thought processes match, we keep the founders on board as a consultant. However, if not, we let them go, ”Utsav explains.
Currently, EvenFlow has acquired two online vendors, including BabyPro, a baby protection company based in Mumbai. In addition, he is in advanced talks with four other vendors. So far, none of the transactions have been concluded.
Credit: YourStory Design
Funding and future plans
As of December 2020, at least 70,000 sellers were selling through Amazon’s global platform. Many digital sellers also sell on other ecommerce platforms, including Flipkart, eBay, and Etsy, and through Facebook, Instagram, and WhatsApp.
Over the next 18-24 months, EvenFlow aims to acquire 30-40 online businesses, including 70-80% of founders during the three- to six-month transition period, 10% as a consultant and the 10% remaining as influencers.
In 2021, EvenFlow raised a funding round of $ 1 million from the 9Unicorn Accelerator fund, Equanimity Ventures and angel investors, includingCEO Kunal Shah and Co-founder Gaurav Munjal.
The American startup Thrasio’s business model has found many takers in India. Ananth Narayanan, former CEO,, with Kunal Bahl of Snapdeal and Supam Maheshwari of First Cry, are leading the charge in this segment.
While Ananth founded Mensa Brands, Supam’s GlobalBees raised a large Series A funding of $ 150 million.
Major investors, including Chiratae Ventures, Lightspeed India Partners and Fireside Ventures, remain extremely bullish on Thrasio-like startups.
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