ofScale

#TodayUpdates: 1. B2B fruits marketplace VEGROW raises $46M in Series C round led by Singapore’s GIC 2. Aye Finance Pvt. Ltd secures Rs 310 Cr in Series F round led by British International Investment 3. Agilitas receives Rs 100 Cr funding from Nexus Venture Partners 4. Axis Bank, GuarantCo extend Rs 250 Cr loan to Vivriti Capital to boost electric mobility 5. D2C fast fashion brand SNITCH bags Rs 110 Cr in Series A funding 6. M2P Fintech acquires Goals101 for data-driven personalisation in digital banking 7. ofScale raises $375K in pre-seed round 8. Gensol Electric Vehicles to launch its first EV car in March 2024 9. Digital banking co ANQ - India's most rewarding Experience! acquires Kiwimoney 10. Former Brand Factory CEO Vishnu Prasad’s Fashion Startup Absolute Brands & Retail Pvt Ltd Raises $2.5 Mn 11. Purplle.com’s FY23 Sales Inch Closer To INR 500 Cr Mark, Loss Widens To INR 230 Cr 12. IPO-Bound PayMate ’s FY23 Loss Narrows Marginally To INR 55.7 Cr 13. CaratLane founder Mithun Sacheti joins Singularity Growth as co-sponsor, general partner

𝗡𝗲𝘄𝘀 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀 𝗳𝗼𝗿 𝟏𝟒𝐭𝐡 𝐃𝐞𝐜𝐞𝐦𝐛𝐞𝐫 𝟮𝟬𝟮𝟯 1. Agilitas 𝐫𝐚𝐢𝐬𝐞𝐬 $𝟏𝟐 𝐌𝐢𝐥𝐥𝐢𝐨𝐧 𝐟𝐫𝐨𝐦 Nexus Venture Partners Bengaluru-based Agilitas Sports secured Rs 100 crore (approx. $12 million) from Nexus Venture Partners in its second funding round this year. Founded by former Puma India MD Abhishek Ganguly, the sportswear platform focuses on investing in India's sports ecosystem. Agilitas recently #acquired sports footwear manufacturer Mochiko Group, with plans for an exclusive licensing #deal with an international shoe brand. The #startup, in its pre-product phase, aims to invest across the sports industry, distinguishing itself with back-to-back funding rounds in 2023. 2. 𝐃𝟐𝐂 𝐛𝐫𝐚𝐧𝐝 SNITCH 𝐫𝐚𝐢𝐬𝐞𝐬 $𝟏𝟑 𝐌𝐢𝐥𝐥𝐢𝐨𝐧 𝐢𝐧 𝐒𝐞𝐫𝐢𝐞𝐬 𝐀 D2C menswear brand Snitch secured Rs 110 crore (approx. $13 million) in a Series A funding round co-led by SWC Global and IvyCap Ventures Advisors Private Limited. The investment, along with support from Shark Tank India judges, will fuel Snitch's expansion in talent, technology, and offline retail. The four-year-old brand, featured on Shark Tank India Season 2, offers a range of men's style essentials and aims to open 100+ offline stores in India by 2028. With FY23 topline crossing Rs 100 crore, Snitch anticipates a 100% #growth in FY24, competing with brands like Urban Cladding and 𝐃𝐚𝐌𝐄𝐍𝐂𝐇. 3. ofScale 𝐫𝐚𝐢𝐬𝐞𝐬 $𝟑𝟕𝟓𝐊 𝐢𝐧 𝐩𝐫𝐞-𝐬𝐞𝐞𝐝 𝐫𝐨𝐮𝐧𝐝 𝐥𝐞𝐝 𝐛𝐲 First Cheque Bengaluru-based ofScale, a Distribution-as-a-Service platform, raised $375K in a pre-seed round led by First Cheque. The funds will fuel product development and go-to-market efforts. ofScale uses a tech-driven B2B model, initially focusing on beauty and personal care brands, enabling them to enter offline markets cost-effectively by leasing retail shelves in independent stores. The platform has partnered with prominent D2C brands, including Bodywise, Deconstruct, and Arata, with plans to expand services to other categories. 4. M2P Fintech 𝐚𝐜𝐪𝐮𝐢𝐫𝐞𝐬 Goals101 𝐝𝐨𝐞 𝐈𝐍𝐑 𝟐𝟓𝟎 𝐂𝐫.   Digital banking infrastructure company M2P Fintech has acquired Goals101, a transaction behavioral intelligence (TBI) firm. Post-acquisition, Goals101 will enhance data capabilities for personalized financial products. The deal, estimated at around Rs 250 crore, enables seamless integration of Goals101's technology into M2P Fintech's services. Goals101, with advanced algorithms, provides real-time intelligence to boost customer engagement for financial institutions across India, MENA, and Southeast Asia. M2P Fintech had previously acquired identity validation services provider 𝐒𝐲𝐧𝐭𝐢𝐳𝐞𝐧 in July 2022. 𝐅𝐨𝐥𝐥𝐨𝐰 Corporate Valuations 𝐟𝐨𝐫 𝐦𝐨𝐫𝐞 𝐬𝐮𝐜𝐡 𝐍𝐞𝐰𝐬 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬 #news #newshighlights #updates #newsupdates #transactions #valuation #venturecapital #fund #BusinessValuation #investments #startup #growth #acquired #venturecapital #deal

We are deeply committed to making an impact by democratizing Consumer packaged goods (CPG) innovation for a broader audience. At ofScale, we collaborate with forward-thinking brands that address the ever-changing demands of consumers, breaking down barriers for their expansion into offline retail. We are excited to have found investors who share our vision and support us on this transformative journey. First Cheque DeVC Revant Bhate Abhishek Goyal Mekin Maheshwari Relentless VC Shruti Banda Pankaj Singh Vishwachetan Nadamani Leoneil Nunes e Barros Kshitij Saxena Nikheel Kamble Tonmoy Shingal Santosh Lakshman M Shweta Peddakota Shiva Kumar Gundu Sravanthi Madishetty Murali Krishnan Nair Piyush Jangid Sudhanshu Batta Eeshan Singh Rakesh Dhara Ankita SarafPrateek Agarwal (Pre-seed investor) Divyanshi Chowdhary Rahul Mamman Prudhvi Vasa Anusha Ram Chennam Chetty Kruthika Banpur Vikram Kanghati Rajeswari Dantoor Suvigna Shour Tarun Kedia Vijay Akkaladevi Looking forward to connecting with D2C brand owners venturing into offline retail. https://lnkd.in/g-BADp9m

Congratulations Jitendra Sharma KAPIL DEV on your fundraise! We're thrilled to be enabling Hair Original's Bangalore offline retail presence and excited at the growth prospects. https://lnkd.in/gse3rhxa

Emergence & importance of offline for digital first brands: "We eye to become a Rs 1,000 crore brand by the end of next fiscal. We expect 50 per cent of our revenue to be contributed by online channels, 45 per cent by offline channels, and the remaining 5 per cent will come from the international markets," https://lnkd.in/ghWpt8hr

Congratulations Stuti Kothari Ayush Kothari & Ankit Kothari. We’re super excited and happy to partner with visionary brands in their next leg of growth. https://lnkd.in/g_dUz5mR

When is the right time for FMCG brands to get a distributor.? An oversimplified primer: - Typically distributors are offered between 5% to 10% margin on the products as commission from the brand's turnover. - Distributors incur costs like warehousing, logistics, and overheads to run operations to ensure good quality distribution service to the brand. - On average, distributors target to retain 1.5% to 2% of their turnover (usually equal to their investment, but for younger brands investment = 3-4X of turnover often). - The quality of the distributor you attract is a function of the net take-home = 2% x Turnover along with the ROI = (Net take-home) / investment; or ROI = (modern-day2% x turnover) / investment. - Comparing it with a gig worker who makes INR 20,000+ in a city with near zero investment, unless your turnover is INR 10 lakh+ per month, at 2% returns you will be attracting distributors who are better off doing gig work. - Add to that the barrier of investment typically needed to get started as a distributor. If a brand's expected turnover is INR 10 lakh or lower, an exclusive distributor rarely makes sense. Look for either a shared distributor or alternative modern day solutions. At ofScale, we're helping younger brands accelerate their journey from zero to 10L scale offline. Reach out if you're evaluating offline expansion for your brand.

Consumer Promos are expensive to operate and getting it right can be tricky. A framework to approach: If you're launching your brand offline and want to be surgical about it, reach out to us.

Often ignored part of Beauty & Personal Care brand's offline effort is the effectiveness of your Brand Promoter. Figured ChatGPT already had a great list to follow. Training brand promoters for the beauty and personal care industry is essential for success. Here are key considerations: Product Knowledge: In-depth understanding of products, ingredients, and benefits is crucial. Customer Service: Promoters should excel in active listening, empathy, and problem-solving. Skin and Hair Types: Teach them to assess customer needs for personalized recommendations. Brand Identity: Emphasize brand values and unique selling points. Application Skills: Demonstrating product usage enhances customer trust. Objection Handling: Equip promoters to address common customer concerns effectively. Hygiene: Stress the importance of product hygiene and sanitation. Compliance: Ensure adherence to industry regulations and ethical practices. Sustainability: Communicate the brand's commitment to eco-conscious consumers. Trends: Keep promoters updated on industry developments. Communication: Enhance verbal and non-verbal communication skills. Sales Techniques: Train in upselling, cross-selling, and closing sales. Feedback: Establish a feedback loop for continuous improvement. Product Safety: Awareness of allergies and sensitivities is vital. Inclusivity: Sensitivity to diverse customer needs is essential. Conflict Resolution: Provide techniques for handling difficult situations. Sales Goals: Set clear targets and metrics for performance evaluation. Self-Care: Promote a healthy work-life balance. Policy Adherence: Ensure knowledge of company policies and procedures. Ongoing Support: Maintain motivation through continuous training and support. Effective training empowers brand promoters to create positive brand experiences and drive sales in the competitive beauty and personal care industry.

When you're a young brand launching/expanding in offline retail, it is always preferred to choose retail first (vs chasing wholesale). Why? First, some definitions. Wholesale: Stores that buy your product in bulk at a high discount (50-70%) and resell to retailers. Retail: Stores that buy your product in limited quantities and serve end consumers, often at significantly lower margins than wholesale (25-30%). 1) Brand Control: Retail distribution allows FMCG companies to have more control over their brand's presentation on store shelves. They can ensure that their products are displayed prominently and in line with brand image and marketing strategies. 2) Customer Interaction: Retail distribution allows for direct interaction with end customers. Helps build insights into consumer preferences, buying behavior, and trends, which can be used to tailor products and marketing efforts more effectively. 3) Pricing Control: FMCG companies can have better control over pricing in retail distribution. They can set the price at which their products are sold to consumers, which can be critical for maintaining price consistency and brand image. 4) Product Innovation: Retail distribution allows FMCG companies to quickly introduce new products or variations based on consumer feedback and market demand. Agility is good for young brands. 5) Brand Building: Retail distribution can be an essential component of building and strengthening a brand's presence. It allows companies to showcase their entire product range and build brand loyalty among consumers. 6) Marketing and Promotion: FMCG companies can implement marketing and promotional strategies directly at the point of sale in retail distribution. This includes in-store displays, promotions, discounts, and product demonstrations. 7) Consumer Data: Retail distribution channels provide access to valuable consumer data, which can be used for targeted marketing campaigns, product development, and demand forecasting. 8) Seasonal and Regional Variations: FMCG products often have seasonality and regional variations in demand. Retail distribution can help companies tailor their product assortment and stocking levels based on local and seasonal preferences. 9) Product Freshness: For perishable FMCG goods like food items, retail distribution allows companies to ensure product freshness and quality control directly to the end consumer. 10) Bargaining Power: A store's contribution to your business dictates his bargaining power. Even if you get it right, versus retail, an average wholesaler contributes more (in percentage sales) and hence holds much higher bargaining power. However, it's important to note that retail distribution also comes with challenges, such as the need for a strong sales and distribution network, higher operational costs, and competition for shelf space. ofScale enables challenger brands to reach offline retail stores without the need of a large sales & distribution network, cost, or complexities.