Time to become a Unicorn startup:
- PayTM & Flipkart: 5 years
- Ola: 4 years
- Udaan: 2 years
⇒ Mensa Brands: 6 MONTHS!
Best part ⇒ It is NOT an "original" idea — just great timing & execution!
Why are VCs going gaga about Mensa Brands? Let's uncover 🧵
Outline: 1. What are Thrasio-style startups? 2. Is the space heating up in India? 3. What's Mensa really about? 4. How did they raise such a big round? 5. Where does the money go? 6. Future for this space
It all started in 2018 with a US startup, Thrasio.
Business model: 1) Acquire top-performing businesses ⇒ Revenue > Costs = Solid profits 2) Avg deal size = $4-5mn 3) Takeover the business & manage it end-to-end
(contd.)
Thrasio (OG startup) stats:
- Acquired 100+brands
- $500 million revenue
- $100 million profit
- $6 billion valuation in only 3 years!
2/ Is this space heating up in India?
VCs love thrasio-model startups!
In India, 1) GlobalBees ⇒ Biggest Series A funding in India of $150 million 2) 10Club ⇒ Largest seed round of $40 million, in <1 year of founding 3) GOAT Brand Labs ⇒ Series A funding of $36 million
3/ So, what's Mensa really about?
Follows thrasio-model: 1) If interested in a brand/business, sign Letter of Intent 2) Due Diligence ⇒ Financial statements, sales, costs, marketing etc. 3) If satisfied with brand health & future growth, share valuation to buy
(contd.)
4) Business founders get money and/or profit-share 5) Real execution ⇒ In-house experts experts take over to build the brand and scale the business rapidly
5/ How were they able to raise such a big round?
Mensa raised $135 million at a valuation of $1.2 billion.
- Thrasio-model is already popular with VCs
- Mensa founded by Ananth Narayanan, ex-CEO of Myntra and co-founder & CEO of Medlife ⇒ Huge credibility
6/ So much money! Where does it go?
80% fund raise to acquire new brands ⇒ $108 million
PayTM's IPO is the biggest ever in India — INR 18,300 Cr!
A huge moment for the Indian startup ecosystem!
But, do you really understand all that's being said?
- What these numbers mean?
- Where the money goes?
- What PayTM's future looks like?
Let's uncover the PayTM IPO 🧵
Structure of the analysis: 1) Understanding the IPO 2) Is PayTM that big? Is it profitable? 3) Is this exciting? What's the future? 4) OK, I'm happy - but, is it worth it?