E-commerce roll-up platform Evenflow has secured an undisclosed amount in a bridge funding round from serial entrepreneur Shail Patel and existing investors. This investment is part of the company’s ongoing $5 million Series A round. The newly raised capital will be utilized to expand operations and grow its portfolio of seven acquired homegrown brands: Xtrim, Yogarise, Rusabl, BabyPro, Trendy Homes, Cinagro, and Frenchware. Evenflow aims to bolster these brands’ global footprint by entering new markets.
Strengthening Supply Chain and Marketplace Presence
The bridge funding follows recent initiatives to enhance Evenflow’s supply chain capabilities, marketplace presence, direct-to-consumer (D2C) operations, and quick commerce. The company also announced key leadership changes, including the promotion of Shashank Ranjan to co-founder, positioning it for accelerated growth. Operating in both India and the U.S., Evenflow claims an impressive 350% growth on e-commerce platforms such as Amazon, Flipkart, CRED, Zepto, and Instamart.
Ambitious Growth Targets and IPO Plans
Looking ahead, Evenflow has set ambitious targets, including increasing revenue by 10X and profits by six-fold by 2027. Despite the optimistic outlook, these goals may pose challenges, as many e-commerce roll-up platforms encounter scaling difficulties. Co-founder and CEO Utsav Agarwal recently shared in a media statement that the company is preparing for a potential IPO by 2027.
The Changing Landscape of E-Commerce Roll-Ups
The e-commerce roll-up space was a hot investment area in 2021, with the emergence of unicorns like Mensa and GlobalBees and significant funding rounds such as 10club’s $40 million seed round. However, the sector has faced hurdles due to a tougher funding environment and setbacks like the winding up of global poster child Thrasio. As a result, funding for roll-up platforms has drastically declined, from $540 million in 2021 to just $39 million in 2024.
While some players like Mensa have secured additional debt, others, such as GlobalBees and Goat Brand Labs, took over 24 months to raise more capital. 10club pivoted its focus to consumer brands, whereas Powerhouse91 and Upscalio haven’t raised funds in over two years. Thrasio, an Amazon aggregator, recently emerged from near bankruptcy and appointed Stephanie Fox as its new CEO.
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