Globalbees, a FirstCry subsidiary, secures agreement to sell international brands in India
- ByStartupStory | April 12, 2023
Globalbees, an ecommerce rollup platform and subsidiary of SoftBank-backed FirstCry, has initiated a new business line focused on obtaining licenses from top foreign brands in the consumer durables and appliances segment. These licenses grant Globalbees exclusive rights to sell these brands’ products in India, both online and offline. With around 10 brands already signed up, including K Mart from Australia, Kuvings and Coway from South Korea, and Anker from the US and China, Globalbees is also setting up offline stores called Frootal to sell these premium global products in traditional brick-and-mortar stores like Croma, as well as in other stores managed by Globalbees.
Globalbees, one of the largest third-party cross-category sellers with 22 certified warehouses, is leveraging its infrastructure to bring major global brands to India through licensing deals. According to Nitin Agarwal, the cofounder and CEO of Globalbees, the company will also provide after-sales services for these products. Agarwal also highlighted that certain premium brands, such as Kuvings, may have higher price points, with a juicer from such brands costing around Rs 20,000, compared to a regular juicer priced at approximately Rs 10,000.
Globalbees, valued at $1.1 billion in 2021, acquires inventory of select SKUs from global brands and obtains exclusive rights to sell them in India. The company has already opened an offline store in Bengaluru and plans to set up around 10 more stores this year, according to Nitin Agarwal, the cofounder and CEO of Globalbees. Some of the brands for which Globalbees holds licensing rights in India include Instant Brands, Ecovacs, Xgimi, Ecoflow, and Tineco. This licensing model is similar to that used by companies like Aravind Fashions and Aditya Birla Fashion Retail for fashion brands in India.
This move by Globalbees comes at a time when the Thrasio model, which involves acquiring fast-growing brands from online marketplaces and scaling them, has slowed down globally and in India. Other roll-up platforms like Mensa Brands and Goat Brand Labs have also scaled back on new acquisitions due to softening valuations and a liquidity squeeze in the funding market. Since its inception, Globalbees has invested in approximately 26 companies and has over 55 brands in its portfolio. Typically, roll-up ecommerce players acquire a majority stake in a firm and collaborate with the founders to further scale the brands.
“We recognized the importance of having our own infrastructure early on, which sets us apart from others. This positions us to scale existing brands across online and offline channels, as well as introduce new brands to consumers,” said Agarwal. He added that the company’s monthly shipped gross sales, including returns, amount to approximately Rs 140-150 crore. Among the Thrasio-style ventures, Globalbees and Mensa Brands, backed by Alpha Wave, have secured more capital compared to others.
Globalbees, led by Agarwal, has embarked on building new brands in-house, particularly in unorganised categories such as car maintenance, small furniture, and home décor. “We are identifying gaps in these sectors and creating our own brands from scratch,” Agarwal stated. Notably, Thrasio’s India arm was also reported to be exploring a similar strategy of bringing foreign brands from its US portfolio to India, rather than making new acquisitions, following the turmoil in Thrasio’s US operations. Globalbees owns brands like The Better Home, Reach, Andme, and Yellow Chimes, and boasts investors such as Premji Invest, Steadview Capital, and SoftBank.
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