ananth narayanan: Mensa Brands expands into US, Middle East and other global markets
Net income is the sale value of goods excluding returns and discounts.
It comes at a time when the rolled-up commerce sector is facing headwinds, with the likes of Thrasio cutting costs amid a CEO change.
Narayanan told ET that more than 30% of the company’s revenue now comes from markets outside India and 50% of its brand portfolio is available outside the country. Mensa operates in the United States, United Arab Emirates, Canada, United Kingdom, Germany and Singapore through marketplaces and its own platform. “We don’t burn money in any brands, we only use the money we raised to acquire new brands,” Narayanan said.
The company aims to double its net income rate to Rs 3,000 crore over the next year and will hire an additional 700 people to double the size of its team to 1,400 as it eyes further expansion in India and overseas. ‘foreign.
Mensa already operates 20 brands online and will be looking to add another 20. Narayanan expects some deals to be relatively cheap due to the slowdown in startup funding. The company said it also made Ebitda (earnings before interest, tax, depreciation and amortization) positive, excluding one-time expenses related to the acquisition of its brands.
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“We had a very good start to the year. We are at Rs 1,500 crore in net income rate, we have more than 20 brands, the organic growth rate of these brands is over 80%,” Narayanan said. Mensa operates brands in fashion, lifestyle and home and Narayanan said the company may look to enter a new category this year.
He described the company’s technology as the “secret sauce” that helped Mensa grow with a positive unit economy.
“There is the demand side and the supply side. On the demand side, we’ve built brand analytics, we’ve built pricing, there’s API integration with Amazon, Flipkart, Ajio, Myntra,
. We have the ability to review data, prices, reviews and ratings in real time, we scratch the ratings. On the supply side, we have models for warehouse management, inventory management, order management, and forecasting. We built all of these systems in-house and that’s our secret sauce,” he said.
Mensa sells its brands in both markets as well as on the brands’ own websites, but Narayanan said entering new markets would not be a money-burning exercise.
“On Amazon, your reviews and ratings translate there. It carries over to other markets as well,” he said. “Product development and online sales spending is all centralized in India.”
The company has three offices in India, in Bangalore, Gurugram and Mumbai.
Narayanan also expects acquisitions to become cheaper as funding dries up, particularly in the commercial rollup space, which received record seed funding rounds in 2021.
While many companies started with the same goal and similar funding rounds, ET reported on April 20, citing multiple industry trackers, that well-funded brand houses such as Firstcry-backed Mensa Brands and Globalbees have grabbed a substantial chunk of funds and acquired a plethora of brands, leaving behind smaller players such as Upscalio, Goat, 10Club, Powerhouse91, Evenflow and Bzaar.