Vision is to build global brands from India by partnering with the right entrepreneurs, investing into business and bringing expertise to bear to scale the brand
D2C Market Place Growth Hacking
Brand evaluation & acquisition process of Mensa
Mensa’s Process Optimization Going Global
Expertise Getting to Valuation & Due Diligence Accelerate know the Commercial & Deal the brand Demand Planning Brand & Marketing brand construct Closure acquired
Category Mgmt.
Process of selecting the brands for current assignment Shortlisted Companies
Since majority of D2C brands are in Personal care, Apparel, Home care, and F&B, the current chosen companies are in these segments
Women personal Provides Provides Organic
Chosen companies which have unique product offering compared to and hygiene Intelligent apparel product directly other companies in similar segment products offered which are stain from farm to Bootstrapped free and anti- consumer company with 11 germ Bootstrapped Also, companies which are bootstrapped/majority shareholding with Cr revenue in 81% shareholding company with > 5 founders are chosen FY19 with promoters Cr revenue
2 Namyaa – Personal Care Products
• Namyaa is into providing beauty care products for women
• Key products segments include: Skin care, Fragrance, Women Hygiene, Health & Wellness, and Personal care products • As menstrual hygiene is an issue the brand is understanding the behaviour of the customers and focusing on the real problems • The products are sold via online platforms like Nykaa, Amazon, Flipkart and its own website, and has Pan India presence
The products offered have zero side effects, which very few companies assure of and is concentrating on the women hygiene segment which is hard to Differentiation penetrate into given the taboo associated with it. The company is donating menstrual cups in rural India to spread awareness about sanitation and Factor upkeep of menstrual health
Investment Thesis: Fitment to Mensa • Personal care market in India is estimated to be ~INR 1,120 Bn in 2020 and is Revenue The company has a revenue of INR 11 Cr in FY19, which falls in the range expected to grow at 12% CAGR over next 5 years to reach ~1,981 Bn by 2025. Of Range of Mensa’s target of USD 1 Mn – 10Mn this, online segment forms 8% and has grown at 60% CAGR over last 4 years Positive The company has a positive unit economics which shows it is not a cash • Growth rate in online is expected to grow, given the inclination towards online Unit Eco. burning business, with scale the company can be profitable going forward products by people in urban cities In FY18, the damaged goods are 5% of sales. Though it reduced to <1% in • Namyaa has grown at 67% CAGR between FY16 and FY19 to reach a top line of Process FY19, the fluctuation still persists. Mensa can help optimise process for Optimization ~11 Crs. Also, the company has positive unit economics with CM2 margin being better quality
34% in FY19. In FY19, the company increased its marketing expense to 30% as Though company ramped up marketing spend to 30% of sales in FY19, Brand & the desired output is not achieved in sales numbers (given the high percent of sales compared to previous years which provided boost to sales Marketing potential). Mensa can help increase the brand awareness of Namyaa which can result in exponential growth of the product
• Bigphi Technologies is providing technologically advanced men’s apparel under the brand name “Turms” • Key product segments include: Mens Apparel (Shirts and Trousers), Home Care products • Founded by Rameswar Misra, Alok Sharma, Rohit Gupta, Subhraneel Saikia, Sandeep Kataria and Anil Dhondalayn in 2016, based out of Bengaluru • Distribution channel: Currently provides services via its own website and Amazon • Currently there is no update on sale of home care products
Differentiation Apparel offered by the company are stain-repellent, quick dry, anti-germ, anti-odour, anti-wrinkle. Also, these products have higher quality with Factor certifications received from Global Organic Textile, UQAS, OEKO-TEX®.
Investment Thesis: Fitment to Mensa • Indian apparel market is huge with a market size of USD 103 Bn as of FY21 and is Revenue With revenue of ~25Crs in FY20, the company fits into the range USD 1 expected to reach USD 190 Bn by FY26, growing at CAGR of 13% Range Mn – USD 10 Mn, with a niche product offering • With increasing disposable income and growing awareness, the demand for tech Has Pan India presence, but not inline with other apparels like Roadster, advanced apparel is expected to increase Scalability Dennis Lingo, Wrogn etc. Mensa can turn Turms at par with others • The company scaled from INR 3 Cr in FY17 to INR 26 Cr in FY20, which grew at a CAGR of 203%, inline with multiple niche apparel brands (like Karagiri) Growth Though the company has a niche product, the growth is similar to other Hacking D2C products. With higher potential, Mensa can help increase growth • While the company is EBITDA negative, it has a profitable unit economics with CM2 margin being >10% in FY18, FY19. The CM2 margin reduced in FY20 due to Category Though company has niche apparel, entry into home care products has to Mgmt. be justified. Mensa can help prioritize the categories with higher value increased marketing expenses on an absolute basis
• Zama Organics is an Mumbai based firm which is into providing Organic food products directly to consumer • Key product segments include: Vegetables, Fruits, Grains & Cereals, Kitchen staples, Spices & Condiments • Founded by Shriya Naheta in 2016, Zama is a boot stapped company which has a network of over 50,000+ certified organic farmers • Distribution channel: Currently provides services via Amazon and its own website • Predominant presence in West India
Differentiation The company is one of the few providers of fresh organic produce directly to consumer. The company is also planning to partner with other farmers to Factor convert them into organic farmers which would increase their network of farmers
Investment Thesis: Fitment to Mensa • Indian Organic food industry as of 2020 is valued at USD 815 Mn which is expected Revenue With revenue of ~5 Cr in FY20, assuming the revenue reached more than to reach ~USD 2.5 Bn by 2026, at a CAGR of 24% Range 7.5 Cr in FY21, the company fits into the range USD 1 Mn – USD 10 Mn • The current Organic food market is very fragmented with very less branded Currently the reach of Zama is in Western region only. With Mensa’s players, which provides a headway for players like Zama Organics Scalability expertise of global reach, Zama can become a Pan India player • Besides, government initiatives for sustainable agriculture like NMSA provide incentives to farmers to pursue organic farming Brand & There are very few branded players in Organic foods segment. Mensa can Marketing help Zama in establishing a Pan India brand • Zama Organics grew from a mere ~INR 5 lakh revenue in FY16 to more than INR 5 Cr revenue in a span of 4 years recording a CAGR of ~216%, while reducing the Demand Reviews suggest, products are out of stock multiple times. Mensa can Planning help Zama have a good inventory management to avoid stock outs [EBITDA loss/Revenue] from [-1.6] to [-0.12] (between FY17 – FY19)
Source: VCCEdge, News articles 5
Brands evaluated but not considered
Personal care product with good growth in revenues. But has large pool of investors and the company itself is looking to acquire more brands to acquire (which are in range of 15 – 40 Cr)
Has a range of men’s personal care products but with a revenue growth of 91% in 3 years (FY17 – FY20), but has been recently acquired by Emami
Has a wide range of apparel with large presence in online commerce. Though bootstrapped, the revenue range crosses the range of USD 1 Mn – USD 10Mn
The revenue range is within the required target range but has a large pool of investors with high cash burn
Other D2C brands
evaluated but not considered due to scale/promoter ownership/profitability
