Net revenue run rate is the value of merchandise sold excluding returns and discounts.
This comes at a time when the aggregated business sector is facing headwinds, with companies such as Thrasio in the US cutting costs during CEO changes.
Aggregate Commerce buys multiple online sellers operating on Amazon and other e-commerce marketplaces and helps them sell better with better management and shared expertise.
Narayanan told ET that more than 30% of the company’s revenue now comes from markets outside India, and 50% of its brand portfolio can be sold abroad.
Mensa operates in the US, UAE, Canada, UK, Germany and Singapore through marketplaces and its own direct-to-consumer (D2C) website, the first of its kind to enter an overseas market.
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“We’re not burning money on any brands, we’re just using the money raised to acquire new brands,” Narayanan said.
The company aims to double its net revenue run rate to Rs 3,000 crore next year and will hire 700 people and double its team size to 1,400 as it looks at operating in India and abroad further expansion.
Mensa already operates 20 online brands and will be looking to add 20 more.
The company operates popular online fashion brands such as Dennis Lingo and Karagiri.
Narayanan expects some deals to be relatively cheap due to the slowdown in start-up capital.
Excluding a one-time transaction fee to acquire its brand, the company said it has also turned EBITDA positive. Ebitda represents earnings before interest, taxes, depreciation and amortization.
“We are off to a very good start to the year. We have a net revenue run rate of Rs 1,500 crore and we have more than 20 brands with organic growth rates of over 80%,” Narayanan said.
Mensa operates brands in the fashion, lifestyle and home categories.
Narayanan said the company may consider entering a new category this year.
He describes the company’s technology as the “recipe” that helps Mensa achieve scale with positive unit economics.
“There is a demand side and a supply side. On the demand side, we build brand analytics, we build pricing, API integrations with Amazon, Flipkart, Ajio, Myntra,
. We have the ability to see real-time data, pricing, reviews and ratings, and we collect ratings,” he said.
“On the supply side, we have warehouse management, inventory management, order management and forecasting models. We’ve built all of these systems in-house and that’s our secret sauce,” Narayanan added.
Mensa sells its brands on the marketplace and on its own website.
Entering a new market won’t be a cash-burning activity, Narayanan said.
“On Amazon, your reviews and ratings are translated there. It’s also promoted in other markets,” he said. “Expenses for product development and online sales are concentrated in India.”
The company has three offices in India – Bangalore, Gurugram and Mumbai.
Narayanan also expects acquisitions to become cheaper as funding dries up, especially in the aggregated commerce space, which received a record seed round in 2021.
While many companies start out with the same goals and similar funding rounds,
ET reported on April 20, To quote some industry trackers, well-funded branded companies like Mensa Brands and Firstcry-backed GlobalBees have monopolized most of the money and acquired a slew of brands, leaving behind smaller companies like Upscalio, Goat, 10Club, Powerhouse91, Evenflow and Bzaar.