Evenflow forays into Amazon USA by acquiring a majority stake in Trendy Homes by Pepmart
Evenflow Brands, an aggregator of third-party online sellers, has made its international foray by acquiring Trendy Homes by Pepmart- a home furnishing brand, selling exclusively on Amazon US. It is a four-year-old brand based out of Karur, Tamil Nadu. This is Evenflow’s eighth acquisition in the past eight months.
With Pepmart, Evenflow seeks to build its capabilities in international markets, starting from Amazon US. The infrastructure shall be replicated and used to scale their already acquired brands to Amazon US as well.
Founded by former Uber executives Utsav Agarwal & Pulkit Chhabra in 2021, Evenflow aggregates third-party sellers on e-commerce platforms like Flipkart and Amazon. It acquires online marketplace sellers in the range of $200k – $2mn per brand.
Trendy Homes by Pepmart is Evenflow’s first acquisition in the Home Furnishing category and they are looking to acquire significant market share in this category on e-commerce marketplaces such as Amazon, Flipkart, Meesho and others in India. Home furnishing is still a highly unorganized market which gives Evenflow an opportunity to build a brand and command mindshare in the consumer’s mind.
“It is incredible how Ram has built an Amazon US-focused business sitting out of India. We see a massive growth potential for the brand in the US, India and other international markets. Additionally, this deal gives us exposure to Amazon US and is going to be a learning experience for us in building playbooks to grow our other domestic brands internationally. We are super excited to start our journey with Trendy Homes by Pepmart’, says Utsav Agarwal, co-founder & CEO of Evenflow.
Talking about the acquisition, Evenflow’s co-founder, Pulkit Chhabra said, “Ram has built his business so well and partnering with him is super exciting for us. The entire acquisition process was super smooth and we are looking forward to working with the team.”
Evenflow has acquired a majority stake in Pepmart at an upfront amount basis EBITDA multiple valuations.
Pepmart’s founder, Ram Kumar, said, “The main idea behind the brand is to offer affordable products in world-class quality. Having interacted with Evenflow over the past few months, I realized that they understood the business holistically and brought in significant expertise to help scale this brand on e-commerce platforms. We were completely aligned in terms of our future plans to build and expand the brand. With the e-commerce expertise that Evenflow brings, Pepmart can expand globally and can be made accessible through many more platforms with a wider variety of products under different categories.”
Unlike other Thrasio- style rollups focusing on D2C brands, Evenflow is heavily focused on third-party sellers on marketplaces and acquires them at EBITDA multiples and, not revenue multiples. In the past, Evenflow has acquired seven third-party e-commerce sellers with attractive product portfolios with the aim to establish them as solid brands across multiple categories.
The sheer width of sellers across different categories is massive and is only growing year on year. In 2020, over 700,000 sellers signed up on Amazon India, making it the highest among any Amazon marketplace globally. Also, globally, third-party sellers on Amazon crossed $300 billion in GMV & are expected to reach $650 billion in GMV by 2025. While they have good product portfolios, they do not have the necessary expertise and capital to scale. That is where e-commerce aggregators like Evenflow become enablers for the growth of such brands.
About Evenflow
Evenflow acquires marketplace sellers ($200k-$2M) with a great product portfolio and massive growth potential. It scales them by building optimization levers cutting across the supply chain, performance marketing, brand marketing, platform optimization, and sourcing. It has acquired 7 brands and launched 2 private labels up that are running on multiple marketplaces. It’s a team of 45+ people with diverse work experience – ranging from Flipkart, Amazon, Udaan, Uber, Marico, Lifelong to others.
