Recently I came across this model after reading about couple of Indian startup. Thrasio is a decacorn ($10 billion), founded by Joshua Silberstein and Carlos Cashman in 2018. It thrives on Amazon by acquiring top selling brands on Amazon and scaling them up. India’s Mensa Brands and GlobalBees are based on this Thrasio model.
They use their expertise to revisit the branding and optimising the marketing and advertising on amazon market place. Also, they can make better deals with the suppliers as they will be selling more. The key things about this startup is that it has been already profitable. In 2020, just two years after its inception, it generated $500 million in revenue and $100 million in profit, becoming the fastest profitable unicorn in US. Probably that’s the reason this model is being leveraged by so many startups in India.
The startup needs a lot of cash as it buyout the brand completely in cash. They are singing the deals within 50 days and have around 40 brands under their belt. Probably if any of the brands have common raw material or manufacturer, they will be in a better position to negotiate with the suppliers and as a result generating more profits and acquiring more brands from that cash. Can they really create that loop?
What do you think?
Igniting Curiosity.. 
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