AV Birla Group’s TMRW invests in 8 D2C brands | The Financial Express

AV Birla Group’s TMRW invests in 8 D2C brands

With these investments, TMRW plans to bring growth capital, strategic technology intervention along with category expertise and brand building to the founders.

AV Birla Group’s TMRW invests in 8 D2C brands
The aim of this entity would be to invest in online brands or those which derive a major part of their sales via the online medium. (Illustration for the representational purpose only/Pixabay)

Aditya Birla Group’s new venture TMRW on Monday said it is investing in eight direct-to-consumer brands to create a ‘House of Brands’ entity over the next few years. The aim of this entity would be to invest in online brands or those which derive a major part of their sales via the online medium.

“We have taken majority stake and invested in these brands to scale them to the last level,” Prashanth Aluru, CEO and co-founder, TMRW, told FE. “This is the first foundation that we have built. We will expand from these to other apparel (and) to other non-apparel fashion categories as well. And starting next year, we will expand into beauty and personal care,” Aluru said.

With these investments, TMRW plans to bring growth capital, strategic technology intervention along with category expertise and brand building to the founders.

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“We are also putting in place a team which comprises professionals from Meta, Flipkart, Myntra, and Cred. This will bring in operational and technology expertise, while the founders will continue to build their brands,” Aluru said.

TMRW will also help these brands with e-commerce and digital marketing platforms like Facebook, Instagram and Google to help them scale up.

The company said that with these eight D2C brands on board, TMRW has achieved a revenue run-rate of `700 crore and will cross an annual revenue rate of over `1,500 crore in the next 12 months.

Aditya Birla Group launched TMRW, its new ‘House of Brands’ entity, in June with a view to launch and support new-age digital ventures in the fashion and lifestyle space, which would enable the next phase of direct-to-consumer growth in India. The segment is poised to become a $100-billion market by 2025, according to the company.

Over the next three years, TMRW will acquire and incubate over 30 customer-obsessed brands, the company said.

The brands in which TMRW has invested in include, among others, Berrylush, a women’s western wear brand; Bewakoof, a casual and expressive wear brand; Nauti Nauti, a kids wear brand; and Nobero, an athleisure and active wear brand. TMRW will also provide these brands category expertise like design, differentiation to product quality, sourcing and manufacturing, Aluru said.

While TMRW has for now invested in Indian D2C brands and plans to scale them up both in India and globally (selectively), Aluru said it is open to bringing international brands to India.

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The direct-to-consumer channel has gained prominence in the last two years with several fashion and accessories entities carving a niche for themselves, according to a joint report by Unicommerce and Wazir Advisors on retail and e-commerce trends in the country. In FY22, the fashion and accessories segment saw year-on-year growth of 89.5% on brand websites compared with 52.2% growth the year before. Like Aditya Birla, many other companies like Nykaa have also been expanding their fashion market by investing in D2C brands like Earth Rhythm, KICA and more.

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First published on: 29-11-2022 at 04:40 IST