E-commerce roll-up firm 10Club on Tuesday said it has raised USD 40 million in seed funding co-led by Fireside Ventures and an international investor active in the space. The company said it is one of the largest seed capital rounds in the country for e-commerce roll-up brands.
The round also saw participation from HeyDay, a leading player in the roll-up space, PDS International, Class 5 Global, Secocha Ventures led by Sanket Parekh, boAt founders Aman Gupta and Sameer Mehta in their individual capacity and several other global strategic investors. The funding will primarily be used for expanding 10Club's portfolio of brands, investing in building its technology stack, and for working capital purposes, the company said in a statement.
"This funding from our international partner, who comes with a great understanding of this model globally, and Fireside Ventures, which has successfully championed building many consumer-focused brands, is an important milestone in 10Club's journey. "Having HeyDay participate in the round also gives us the opportunity to learn from operators," 10Club co-founder and CEO Bhavna Suresh said.
Fireside Ventures partner Vinay Singh will join the company's board. 10Club partners with e-commerce product sellers in India by acquiring their businesses and working with their teams to help them grow 10 times in size, according to the statement.
Early-stage local e-commerce firms often find it challenging to scale beyond a particular revenue threshold and their growth plateaus, due to increased competition and dearth of funding opportunities. They face challenges in terms of resources to invest in technology, marketing, optimisation tools, supply chain expertise and skilled human resources. Roll-up companies like 10Club step in to provide them such support. "The potential to catalyse the entrepreneur, scale their business and thereby build a formidable portfolio under the 10Club umbrella is immense."This funding will enable us to expand our portfolio and bring about transformational changes for the businesses we acquire," Suresh. The 10Club team has engaged with hundreds of sellers across specific product categories to understand the motivations, challenges, and opportunities that exist in the market, the statement said.