Evenflow Brands Tech Pvt Ltd, a Thrasio-style marketplace aggregator founded by former Uber executive Utsav Agarwal, on Wednesday said it has acquired e-commerce digital-first brand Rusabl in its second acquisition since its launch this year.
Thrasio is a US-based startup that rolls up popular brands sold on Amazon.com Inc.'s marketplace.
Evenflow has bought Rusabl at an upfront amount basis earnings before interest, taxes, depreciation, and amortization (EBITDA) multiple valuations, it said in a statement without specifying the deal value. It typically acquires online marketplace sellers in a range of $200,000-1.5 million per brand.
As part of the transaction, Mayank Jain, founder, Rusabl, has joined Evenflow.
Evenflow's Agarwal said that with the acquisition it aims to build daily sustainability as a category within Evenflow and establish Rusabl as an affordable, sustainable option in the daily utility space.
"Based on the ongoing trends, eco-friendly products already make a $5.6 billion market in India," he added.
Evenflow noted that it is heavily focused on third-party sellers on marketplaces unlike the other Thrasio-style rollups that have focused on direct to consumer (D2C) brands. Evenflow aims to acquires companies at EBITDA multiples and not revenue multiples, it added.
Just last week Evenflow acquired BabyPro, an ecommerce online business in the baby proofing category.
The Thrasio-model, made popular by Massachusetts headquartered startup unicorn Thrasio that acquires and scales brands to sell on ecommerce platforms, is gaining ground in India and some of them have attracted significant investor interest.
For instance, Mensa Brands founded by former CEO of Myntra Ananth Narayanan, FirstCry backed GlobalBees, Fireside backed 10Club, and UpScalio have adopted the Thrasio model and have raised funding.