10club has acquired three horticultural startups – Kraftseeds, Gate Garden and Kriti Kalash to scale through product mixes, channel expansions and pricing models
Kraftseeds, which also includes Gate Garden and Kriti Kalash, was founded by Gaurav and Shaina Pahwa
10Club plans to announce six more acquisitions in the D2C homes category
Bengaluru-based Thrasio-style e-commerce player 10club has taken over three garden startups, namely Kraftseeds, Gate Garden and Kriti Kalash. The roll-up brand D2C has also announced the âHomeâ category as one of its focus areas.
Founded in 2020, 10club works with ecommerce product sellers in India by acquiring their businesses and working with their teams to help them grow their size tenfold. The e-commerce acquirer was co-founded by Bhavna Suresh (former CEO, Lamudi), Joel Ayala (co-founder, Class 5 Global) and Deepak Nair (former co-founder, 22feet).
10Club aims to build a valuable portfolio and improve the entrepreneurial ecosystem in the country. It offers ecommerce sellers a financial exit while providing the business with the right resources to help them scale.
Earlier this year, the company raised India’s largest $ 40 million seed round from Fireside Ventures, HeyDay, PDS International, Class 5 Global, Secocha Ventures and the founders of boAt.
Bet on the Home Category with Kraftseeds
“Keeping a keen eye for new or even dormant trends is vital for a company as it has to adapt quickly to keep its customer base,” Suresh said on the first edition of Inc42The D2C Summit 2021.
The takeover of Karatseeds, Gate Garden and Kriti Kalash gives 10Club a strong foothold in the lawn and garden industry as well as in the home category.
“More important, [they] will complement the six new acquisitions that we will announce shortly. With these acquisitions, we will have more than $ 50 million in revenue in the home category alone, âNair said in a statement.
Based in Delhi, NCR, Kraftseeds was founded by Gaurav and Shaina Pahwa and is a one-stop online shop selling a wide range of garden products from seeds to pots to fertilizers and tools. Kraftseeds has been in the gardening business for over two decades with a family of more than 100,000 customers.
With over 3,600 SKUs on the platform, it’s currently also the top gardening tool and seeds brand on Amazon. Kraftseeds operates two subsidiary brands – Gate Garden for exotic seeds and garden tools and Kriti Kalash for pots.
Kraftseeds has, among other things, exceptional expertise in seed procurement, a strong network with farmers, tailor-made seed varieties, seasonality, volume and specific quality standards. Over the years, they expanded their product lines to include planters, soil and coconut peat, garden tools and flower bulbs.
With the takeover, 10club wants to open up niches for every brand – from the structuring of their product mix to their pricing models. This enables three unique brands and offers to outsource Karatseeds via one central platform.
The channel expansion through Jiomart, Meesho and Flipkart will also play an important role and stimulate growth.
10Club aims to build a strong brand identity for Kraftseeds and create a niche in the garden category.
The changing face of D2C in India
D2C brands, business models and platforms are with an expected market size of $ 100 million.
In the first seven months of 2021, Indian D2C startups brought 783.7 million brands and more, while giving enablers and digital sellers new growth opportunities.
10Club is one of the many Indian startups acquiring and scaling fast growing digital brands. Just like Thrasio, the US-based company that pioneered the concept of offering complete household health. Hence the nickname – “Thrasio style”.
Other companies with a similar business model in the country include UpScalio, Globalbees, Mensa Brands, Evenflow, Powerhouse91, CureFoods.
For D2C startups entering the global marketplace and venturing beyond India, joining a larger branded house or an e-commerce roll-up offers faster scaling up. The feeling is that with the least amount of momentum, D2C brands can become a target for acquisitions through such platforms.
If not by the end of 2021, then by 2022 at the latest, more and more models of this kind should be on the market.
One of 10Club’s main competitors, Mensa Brands, recently became the fastest unicorn in Asia within 6 months of its launch. Mensa Brands has now acquired majority stakes in 10 D2C startups.
Another Thrasio-style platform, Globalbees, had $ 150 million this July.
While Globalbees acquired two brands this year, Thrasio has allocated US $ 500 million for a foray into the Indian market and has already completed its first local acquisition. This includes Lifelong Online, which offers products from the kitchen, personal care and lifestyle categories.