Evenflow Bags Fresh Funding From Venture Catalysts, Others

SUMMARY

Evenflow has secured fresh capital from Venture Catalysts, Sunder Ramachandran and a few angel investors, as part of its ongoing Series A funding round totalling $5 Mn

The ecommerce aggregator will use the fresh funds to grow and improve profitability across its multi-brand portfolio, including Xtrim, Yogarise and Rusabl, among others

Founded in 2021 by former Uber executives Utsav Agarwal and Pulkit Chhabra, Evenflow acquires and scales third-party sellers on ecommerce marketplaces. The startup's brands are present in India, US and the MENA region.

Evenflow, a Thrasio-style marketplace aggregator floated by former Uber executives, has secured fresh capital from Venture Catalysts, head of business transformation at Dr Reddy’s Laboratories Sunder Ramachandran and a few angel investors, as part of its ongoing Series A funding round totalling $5 Mn (around INR 41 Cr).

The company claims that in October last year, it raised an undisclosed amount in a bridge funding round. With the latest fundraise, it also claims to have raised nearly $14 Mn in total funding till date.

Evenflow plans to use the fresh funds to grow and further improve the bottomline across its multi-brand portfolio — Xtrim, Yogarise, Rusabl, BabyPro, Trendy Homes, Cinagro and Frenchware.

Founded in 2021 by Utsav Agarwal and Pulkit Chhabra, Evenflow acquires and scales third-party sellers on ecommerce marketplaces. The startup’s brands are present in India, US and the MENA region, and claims to have grown 350% by focusing on distribution across marketplaces and quick commerce platforms including Amazon, Flipkart, CRED, Myntra, Blinkit, Instamart, Zepto and Walmart.

“We are a low margin business. With scale, we are beginning to see backend synergies play out, with our downstream cost per unit reducing by the month and further flexibility to stress test the end customer pricing upwards or downwards – thus turning our big bets SKUs into a profitable engine,” said Utsav Agarwal, cofounder and CEO of Evenflow.

Evenflow aims to increase its revenue by 10x and profits by six-fold in next two years while building a strong core team, scaling the business and maintaining a healthy bottom line.

The house of brands has previously received funding from 100unicorns, Village Global, Equanimity, CRED founder Kunal Shah, Paytm founder Vijay Shekhar Sharma and Uber CBO Emil Michael, among others.

In October last year, Evenflow strengthened its leadership team with four key appointments across business, category, supply chain and sourcing verticals.

The Thrasio-style marketplace aggregator operates in the sector alongside other players such as Mensa Brands, GlobalBees, Upscalio, GOAT Brand Labs and 10Club, which also acquire and scale digital-first brands.

The roll-up e-commerce model, where companies acquire and consolidate multiple smaller online brands to drive growth and efficiency, has been gaining traction from venture capital firms, with players like Mensa Brands raising nearly $300 Mn and achieving unicorn status.

These aggregators are adopting various growth strategies, with GlobalBees expanding its portfolio through full acquisitions like The Butternut Co, while GOAT Brand Labs focuses on multichannel expansion across quick commerce, offline stores and exports.

The D2C segment, where most roll-up brands operate, is currently valued at $12 Bn and expected to grow to $60 Bn by FY27 according to a report by Praxis.