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Evenflow Brands, a marketplace aggregator of third-party sellers on e-commerce platforms, on Tuesday announced that it has acquired four consumer brands in India as part of its wider strategy to “significantly expand their reach, portfolio and demand.”
The acquisition includes two sports and fitness brands Vifitkit and Yogarise, a kitchen label, Frenchware, and a gardening brand, Cingaro, all with an annual run rate in the $500k- $2 million range.
As part of the deal, Evenflow will bring on board the founders of Frenchware and Cinagro as consultants.
“We are looking to triple the growth for each of these brands in the next six months. We took our time to build our playbooks and formulate our expansion plans. At present, all four brands are Amazon only but we are in the process of onboarding them on other marketplaces including Flipkart, Meesho and Jiomart,” said Utsav Agarwal, co-founder & CEO at EvenFlow.
The company has acquired these brands at an upfront amount basis EBITDA multiple valuations and performance earn-outs spread over three years.
Vifitkit is a three-year old brand with about 8,000 ratings on Amazon’s Yoga Mat vertical while Hyderabad-based Cinagro, started in 2017, is one of the highest rated brands in the gardening category.
“Evenflow will help build Yogarise into a cult Yoga brand and expand Frenchware into a mass premium brand catering to all major segments within the kitchen portfolio,” it said.
7 brands in 3 months
Founded in 2021 by former Uber executives Agarwal and Pulkit Chhabra, the e-commerce roll-up has acquired seven brands over the past three months including these four latest acquisitions.
The company had earlier bought Xtrim, a sports and fitness accessories brand, baby-care brand BabyPro and Rusabl, an online brand in the daily sustainables category.
The company is heavily focused on third-party sellers on marketplaces and acquires them at EBITDA multiples. It has been acquiring third-party e-commerce sellers with “attractive product portfolios and aims to establish them as solid brands across multiple categories in e-commerce, it said.
“We are extremely cautious with the number of brands we acquire, the idea is to solve all operational bottlenecks and give each brand enough focus on its branding, launching new selection, formulating platform-level strategies independently, for it to thrive.” Pulkit Chhabra, Evenflow’s co-founder & VP, Acquisitions, said.
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