Thrasio-styled marketplace aggregator, Evenflow Brands Tech Pvt. Ltd on Tuesday said it has acquired home furnishing brand Trendy Homes by Pepmart for an undisclosed sum, marking its entry into international markets.
Evenflow has acquired a majority stake in Pepmart at an upfront amount based on EBITDA (earnings before interest, taxes, depreciation, and amortization) multiple valuations.
The deal will help Evenflow build its capabilities in overseas markets, starting from Amazon US. The infrastructure gained by this deal will be used to scale other portfolio brands, the company said in a statement.
Trendy Homes by Pepmart is Evenflow’s first acquisition in the home furnishing category. Launched by Ram Kumar, four-year-old Pepmart is based out of Karur, Tamil Nadu and is Pepmart is Evenflow’s eighth acquisition in the past eight months.
“We see a massive growth potential for the brand in the US, India and other international markets. Additionally, this deal gives us exposure to Amazon US and is going to be a learning experience for us in building playbooks to grow our other domestic brands internationally, said Utsav Agarwal, co-founder, CEO, Evenflow.
Founded by former Uber executives Utsav Agarwal and Pulkit Chhabra in 2021, Evenflow aggregates third-party sellers on ecommerce platforms like Flipkart and Amazon. It acquires online marketplace sellers in the range of $200,000 - $2 million per brand.
Evenflow focuses on direct-to-consumer (D2C) brands, the company focuses on third-party sellers on marketplaces and acquires them at EBITDA multiples.
In January, Evenflow invested in four more consumer brands in a bid to expand its portfolio and reach, Evenflow bought stakes in two sports and fitness brands—Vifitkit and Yogarise.
The company also bought stakes in Frenchware, a kitchen label, nd Cingaro, a gardening brand. Evenflow said that all the brands have an annual run rate between $500,000 to $2 million.