After a period of turbulence and skepticism, roll-up commerce startups are making a steady comeback, thanks to the rapid expansion of quick commerce as a critical sales channel. These startups, which acquire and scale small but promising brands through improved operations, marketing, and technology, are now seeing renewed investor confidence and revenue growth, even as their Western counterpart Thrasio collapsed in early 2024.
Domestic roll-up commerce leaders like GlobalBees and Mensa Brands have reported promising financial results in recent quarters. GlobalBees, a subsidiary of FirstCry, posted a 55% year-on-year revenue growth of Rs 432.5 crore in Q2 FY25. Similarly, in Q3 FY25, Mensa Brands’ operating revenue climbed 11.6% to Rs 557.66 crore, while its net loss decreased by 31% to Rs 155.8 crore.
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This resurgence comes after a period of uncertainty that saw venture capitalists pull back from the segment. In 2021, roll-up commerce was one of the most hyped startup sectors, attracting around $800 million in equity and debt funding. However, within a year, profitability concerns emerged, causing a wave of shutdowns. Companies such as 10club and Upscalio shifted focus to specific niches like home and kitchen categories, while Goat Brand Labs, backed by Tiger Global, struggled with financial runway issues. The global model suffered its biggest blow when Thrasio, the US pioneer of the model, showed signs of bankruptcy in 2023 before collapsing in February 2024.
Despite Thrasio’s downfall, domestic roll-up commerce startups have adapted and diversified, avoiding the pitfalls that plagued their American counterparts. Experts attribute this to their multi-platform approach and early adoption of quick commerce.
“Thrasio relied heavily on Amazon, and when the market shifted, it couldn’t adapt quickly enough,” said Somdutta Singh, an e-commerce expert and investor at Karma Holdings. “Domestic startups, on the other hand, are selling across Flipkart, Myntra, Nykaa, direct-to-consumer (D2C) websites, and now quick commerce platforms like Blinkit and Zepto.”
Quick commerce, which initially focused on groceries and essentials, has expanded into categories such as beauty, personal care, and nutrition—areas where roll-up brands have been able to grow rapidly.
Mensa Brands has leveraged quick commerce to accelerate its expansion. “We have a multi-channel strategy, and quick commerce has gained significant traction over the past year.
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