Goat Brand Labs finalizing $50 million financing through convertible debt

By siliconindia  |  Wednesday, 20 April 2022, 09:10:59 AM IST

Goat Brand Labs finalizing $50 million financing through convertible debt
Goat Brand Labs, a rollup ecommerce platform, is in the final stages of closing a $50 million financing round with new investors like Venture Catalyst and 9 Unicorns coming on board. Existing investors like Flipkart Ventures, Tiger Global and others will also participate in the fundraise, people briefed on the matter said.
Sources said Goat is raising this round through convertible share warrants. This means incoming investors will be able to convert these warrants into equity shares when the company closes its next round of funding.
However, people briefed on the matter said the maximum valuation for investors in this funding is capped at around $250 million.
This means even if the next round values Goat Brand at more than this, these investors will be allotted shares as per the maximum threshold of $250 million.
Vikram Rao, a director at Aditya Birla Fashion, is also participating in the round, the documents showed. Goat Brand Labs had last raised $36 million in July last year.
Goat's new financing comes at a time when the Tharsio-style roll-up firms are expected to see consolidation.
Goat Brand Labs cofounder and CEO Rishi Vasudev declined to comment.
Vasudev, who previously headed Flipkart’s fashion business, has acquired over a dozen brands and is in talks to close two more buyouts, sources said.
Amid the funding euphoria last year, Thrasio-style brand aggregators raked in around $700 million in equity and debt, according to industry estimates.
Sources aware of Goat Brand Lab’s plans said the company is thinking of kicking off a new funding round in the next quarter to raise around $100 million.
Former Myntra CEO Ananth Narayanan’s startup Mensa Brands and FirstCry-backed Globalbees are among the other leading players in the space apart from US-based Thrasio, which pioneered the business of aggregating online brands. Thrasio entered India with the acquisition of consumer durables brand Lifelong.

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