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India’s billion-dollar Mensa Brands is already profitable, says founder

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Mensa Brands in India has rocketed to billion dollar unicorn status in only six months. And, more unusually, it is currently profitable, the founder of Mensa Brands told CNBC.

This week, India’s largest direct-to consumer brand aggregator was the fastest to reach the $1B valuation after it closed its Series B financing round of $135 Million.

Falcon Edge Capital led the financing. This brings total debt- and equity capital to $300 million.

CNBC’s Ananth Narayanan, founder of the company said “Within six months of operation we have actually been profitable”Street Signs Asia” Thursday.

Growing digital-first brands

Mensa Brands is a digital-first brand acquisition company that scales them both domestically and internationally. It is home to 12 brands that span three main categories: fashion and home, beauty, and personal care.

Narayanan explained that they have had success in the acceleration of brands. That is the reason why Narayanan believes the business is worth what it is.

Narayanan said that the key to success was to find profitable brands with loyal customers, quality founders and an annual revenue of between $1 million-$10 million.

Ananth Narayanan is the founder of Indian brand aggregator Mensa Brands.

Mint | Hindustan Times | Getty Images

He said, “Over the past six months, using technology through product through digital marketing we have been able get our brands growing at north of 100 percent year-on-year. And I believe that’s the key,” he continued.

Narayanan indicated that within the next 12 month, the company intends to increase its current verticals and work with 30 other brands.

“These markets are very deep … [they’re]Narayanan stated that the online and offline revenue of north $120 billion is combined. Because we are experts in the market, and we know the niches, this focus allows us to build brand very differently.

IPO plans down the road”

Mensha Brands is experiencing rapid growth as India’s startup ecosystem thrives due to a rise in digital adoption and easier access to capital.

According to the Indian Unicorn Database, approximately 70 startups in India currently fit this definition. Goldman Sachs estimates. A third said that they would surpass $1 billion in valuation by 2021.

Platform for digital payments Paytm, one of India’s original technology start-ups, went public Thursday in a $2.5 billion initial public offering — the country’s largest-ever. Its shares were down 24%Its maiden day in trade

Narayanan, Mensa Brands CEO said that his company doesn’t plan to tap the public markets in this stage. He said however that public listings would likely be possible “down the line”, noting that Mensa Brands has ambitious growth plans.

Narayanan said, “Absolutely,” that we would be going public down the road. “We are a house full of brands. “We want to build what I’d call a digital-first Unilever version or an Inditex.

—CNBC’s Saheli Roy Choudhury contributed to this report.

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