Goat Brand Labs, an e-commerce roll-up company, has raised $21 million in debt and equity from investors including BlackRock, Mayfield, and NB Ventures. This funding comes after a gap of more than two years for the Bengaluru-based company, which plans to close the round at about $30 million. The new capital will be used to boost the growth of its portfolio brands like Chumbak, trueBrowns, The Label Life, Pepe Jeans Inner Fashion, Voylla, Petcrux, and Nutriglow.
The company, which acquires and scales direct-to-consumer (D2C) brands, currently has around 19 subsidiaries in its portfolio. In FY23, Goat Brand Labs saw a 746% increase in revenue from operations, reaching Rs 139.6 crore, up from Rs 16.5 crore in FY22. However, losses also grew by 158% to Rs 80.28 crore in FY23, compared to Rs 31 crore the previous year.
Co-founder Rishi Vasudev stated that Goat Brand Labs is on track to achieve profitable revenue of over Rs 500 crore in annual recurring revenue (ARR) within the next 9-12 months. Prior to this funding round, the company had raised a total of $87 million, with significant stakeholders including Tiger Global, Flipkart, and Mayfield India.
The funding landscape for e-commerce roll-up companies has seen a decline in the past few years compared to the 2021-22 period. While some players have managed to secure debt funding at regular intervals, others have pivoted or faced challenges in scaling.
