Goat Brand Labs, a roll-up e-commerce startup, has acquired 80% in Chumbak, a home and lifestyle brand, Rishi Vasudev, CEO and co-founder told FE. Chumbak last generated an annual revenue of Rs 100 crore and Goat typically pays a 1.5X multiple on a company’s revenue, which roughly pegs the deal value at Rs 100-120 crore, according to sources.
Chumbak has a strong digital and offline presence, is popular among women and caters to customers of all young groups, which made it an attractive buy for Goat, which plans to scale up Chumbak’s revenue to Rs 500 crore by 2025.Besides Chumbak, which is its biggest acquisition till date, Goat has also bought four other startups, the names of which will be revealed in the coming weeks. The other buys would include companies in the home, fashion and beauty and personal care categories, Vasudev said.
“We look for companies that have a high repeat rate, among other metrics. The partnership with Chumbak is the perfect recipe to grow the brand exponentially by expanding its global reach, both online and offline, through a tech and data-driven approach,” he added. Chumbak, founded by Vivek Prabhakar and Shubhra Chadda, sees about 50% of its customers return in a year, that was significantly higher than the industry average of 20-30%. Goat now has 20 startups in its portfolio, which includes the likes of The Label Life, Pepe Inner Fashion.
The Flipkart-backed startup was in advanced talks to acquire about 8-10 other companies and strengthen its position in the market where players like Mensa Brands, Evenflow, GlobalBees, Powerhouse91, 10club and UpScalio compete with each other.
To fund its acquisition plans, Goat is also preparing to raise funds and would conclude the round in about two-three months. The company was founded in May 2021 by Vasudev and Rameswar Misra and has raised nearly $90 million from Tiger Global and others. It aims to clock a revenue of $1 billion by 2025.