Q-comm drives revival of roll-up commerce startups

AFTER A PERIOD of turbulence and skepticism, roll-up commerce startups are making a steady comeback, thanks to the rapid expansion of quick commerce as a critical sales channel.

- S SHANTHI

These startups, which acquire and scale small but promising brands through improved operations, marketing and technology, are now seeing renewed investor confidence and revenue growth.

Domestic roll-up commerce leaders like GlobalBees and Mensa Brands have reported promising financial results in recent quarters.

GlobalBees, a subsidiary of FirstCry, posted a 55% year-on-year revenue growth to ₹432.5 crore in Q2 FY25.

Similarly, in Q3 FY25, Mensa Brands' operating revenue climbed 11.6% to ₹557.66 crore, while its net loss decreased 31% to ₹155.8 crore.

This resurgence comes after a period of uncertainty that saw venture capitalists pull back from the segment.

In 2021, roll-up commerce was one of the most hyped startup sectors, attracting around $800 million in equity and debt funding.

However, within a year, profitability concerns emerged, causing a wave of shutdowns.

Companies such as 10club and Upscalio shifted focus to specific niches like home and kitchen categories, while Goat Brand Labs, backed by Tiger Global, struggled with financial runway issues.

The global model suffered its biggest blow when Thrasio, the US pioneer of the model, showed signs of bankruptcy in 2023 before collapsing in February 2024.