10Club marks its first roll-up acquisition with My NewBorn
10club, a new age e-commerce roll up that acquires, operates and grows digitally native businesses has rolled up its first business with My Newborn, a best selling brand in the baby products category on Amazon. Founded by Abhishek Jain, a former Chartered Accountant and his father, Rakesh Jain (a former film distributor), My Newborn addresses the need for good quality baby care products such as blankets, swaddles etc.
My Newborn was born when the father-son duo were trying to find gifts for a newborn in the family. They realised there was a gap in the industry and the easiest way to get into the industry was by selling on online marketplaces, which showed potential for the kind of involvement that came with low risks but high rewards. Despite initial challenges, over 4 years, My Newborn rapidly scaled its operations and became #2 in the baby blanket category. 3 of their products are among the top 10 on Amazon, and their products average a rating of 4.1, given by more than 40,000 customers. The brand has 13 employees and operates out of a large 16,000 square feet warehouse in Delhi.
10club comes in to partner with the founders of My Newborn with committed resources, focus and attention to scale the business. With an expert team that brings deep category and e-commerce experience, the 10club team along with Rakesh and Abhishek Jain will focus on growing the business 10x, by leveraging various growth levers. The team will also leverage insights from consumer shopping behaviour and usage patterns to differentiate its products, so that it can better serve the needs of the 150Mn+ Indian households that form the core of its primary target audience.
10Club has been creating ripples in the Indian markets, right from the outset by raising $40 million in one of the largest seed funding rounds in South Asia led by Fireside Ventures and an unnamed global investor with HeyDay, PDS International, Class 5 Global, Secocha Ventures and founders of hardware startup boat being the other investors. 10Club aims to build a deeply valuable portfolio and elevate the entrepreneurial eco-system within the country by offering e-commerce sellers a financial exit and the right kind of resources required to help them scale the businesses they have taken years to build.
Talking about their first strategic acquisition, Mr Deepak Nair, Co-Founder & COO of 10club said, “At 10Club, we have set out to build high velocity digital native brands by partnering with entrepreneurs who have built strong businesses on market places and have the potential to become category leaders. Rakesh and Abhishek are new generation entrepreneurs who are extremely passionate, with a great understanding of the consumer and have been able to achieve a high growth trajectory for My NewBorn over the years. We are extremely delighted to have Rakesh and Abhishek join us on this exciting journey.”
Expressing his thoughts about the acquisition, Rakesh Jain, Founder at My NewBorn said, “We have built a brand in a category that was considered unconventional. However, having gone through the experience that the parents of new born babies have to go through, we knew there was ample potential for growth. Our persistence has made us one of the category leaders on Amazon and today, we are generating 100% of our revenue from e-commerce marketplace sales. However, we had reached a stage where we needed financial, technical and expertise infusion to take the brand to the next level. 10Club with its incredible expertise and vision has turned out to be just the right growth partner that My NewBorn needed at this juncture.”
My NewBorn is currently focusing on various areas such as making their products available on marketplaces other than Amazon as well. The brand is also aiming to launch products in adjacent categories and leveraging customer insights to differentiate our products. By jointly enhancing sourcing and COGS efficiencies, My NewBorn along with 10club will focus on improving the margin profile and ensuring that their products are more affordable, valuable and easily available to the masses across India.