E-Commerce Deployment Company Goat Brand Labs Completes $50M Financing Through Convertible Debt
Sources said Goat is raising this round through convertible stock warrants. This means that new investors will be able to convert these warrants into shares when the company closes its next funding round.
However, people briefed on the matter said that the maximum valuation for investors in this funding is capped at around $250 million.
This means that even if the next round values Goat Brand at more than that, those investors will be awarded shares at the maximum threshold of $250 million.
ET also saw regulatory documents from business intelligence platform Tofler on the approval of the latest funding.
Vikram Rao, director at Aditya Birla Fashion, is also taking part in the round, according to the documents. Goat Brand Labs last raised $36 million in July last year.
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Goat’s new funding comes at a time when Tharsio-style deployment companies are expected to experience consolidation, ET reported on April 14.
Goat Brand Labs co-founder and CEO Rishi Vasudev declined to comment.
Vasudev, who previously ran Flipkart’s fashion business, has acquired more than a dozen brands and is in talks to close two more buyouts, sources said.
Amid the funding euphoria last year, Thrasio-style brand aggregators raised around $700 million in equity and debt, according to industry estimates.
Sources familiar with Goat Brand Lab’s plans said the company plans to launch a new funding round in the next quarter to raise approximately $100 million.
Former Myntra CEO Ananth Narayanan’s startup Mensa Brands and FirstCry-backed Globalbees are among the other major players in the space, apart from US-based Thrasio, which was the pioneer of online brand aggregation. Thrasio entered India with the acquisition of durable consumer goods brand Lifelong, as reported by ET.