Mensa Brands is now India's fastest startup to become a unicorn after only six months in operation. After receiving its recent $135 million Series B investment from Alpha Wave Ventures-Falcon Edge Capital, this technology-driven "House of Brands" firm has swiftly gained notoriety in the e-commerce sector.
We'll look closely at the history of the business, its growth plans, and its prospects for the future.
The Initial
Mensa Brands was founded in May 2021 by the ex-CEO of Myntra , an Indian fashion e-commerce startup, and within six months it had a billion-dollar value.
Narayanan worked with McKinsey and rose to the level of managing partner before becoming the CEO of Myntra. His past work as a managing consultant for several companies has proven to be a tremendous advantage in building and expanding digital global brands.
The Mensa Brands Strategy
Growing a "house of brands" was an established idea when Mensa Brands first got its start. Narayanan got the concept for Mensa from the Western company Thrasio, which was effectively applying the approach to American-based businesses.
Narayanan's plan was to combine technology, products, and digital marketing to develop indigenous Indian firms that were entirely digital both locally and internationally.
By concentrating on businesses that Mensa Brands was already familiar with and had expertise enhancing, Narayana was able to expand so swiftly. Mensa Businesses concentrated on the personal care, fashion, and beauty areas, and as a result, they now manage 12 digital brands.
Becoming a unicorn
Mensa Brands was able to attract more than $135 million in their most recent investment round thanks to the precise focus and objectives they had established. This helped them pass the $1 billion valuation threshold and turn into full-fledged startup unicorns.
Narayanan intends to utilise the funds to expand its portfolio and hire staff from several departments. The business is looking to buy 20 additional international digital businesses in India.
The success of Mensa Firms is noteworthy since it has allowed Indian internet brands to generate more money. After being purchased by Mensa, the scent company Villain was able to treble its rate of growth.
Karagiri, a D2C brand of sareejoining the Mensa Brandportfolio,has grown at a 100% annual pace. These businesses have benefited from Mensa Brands' considerable expertise in branding and digital marketing.
In the US, UK, and Germany, six of the Mensa portfolio's brands have already begun to sell. Within the next three to four years, Mensa wants 10 of its enterprises to be worth $100 million each.
Global Influence and Growth of Mensa Brands
Mensa Brands has distinguished itself from many other businesses because to its tremendous development in such a short amount of time. A portion of the expansion can be attributed to India's expanding startup environment. The usage of digital technologies is increasing nationwide, and they now have more access to private finance than they had in the past.
Conclusion
The first house of brands maker has begun looking into the Indian Market as a result of Mensa Brands' quick ascent to prominence.
Thrasio, a New York-based company, raised over $1 billion to immediately penetrate the Indian market. By purchasing smaller companies and merchants on the Amazon Marketplace and assisting them in scaling both locally and globally, Thrasio follows a similar approach to Mensa Brands.
Numerous businesspeople throughout the world are looking for more effective e-commerce models. Many investors think that although the likes of Amazon and Flipkart have constructed the rails for digital commerce, smarter and more lucrative companies can be created on top of them. Global Bees, EvenFlow Brands, 10club, Powerhouse91, and Goat Brands Labs are further startups engaged in the sector in India.
