Good morning, and it's Thursday! Anmol here and it's been a nice break from writing the usual type of newsletter this week (with the longer essay on Monday and Vedica covering Tuesday and Wednesday). But I'm ready to dig in, today we have a consumer social app raising some money & a rare exit of a DVNB co.
➡️ The newly popular short-form video app, Mitron, has raised ₹2 Cr in funding from 3on4 Capital and Lets Venture, with both entities putting in ₹1 Cr each. This deal comes just a couple days after the Indian govt. announced a ban on 59 Chinese apps, including TikTok.
➡️ I've talked about Mitron before a bit, and the app has seen a huge surge in users which is probably accelerated by this recent move by the government. The app already has over 17M users and 2M creators, with 5.5M videos on the platform (quite rapid growth for an app that's about 2 months old).
➡️ This values the company at ₹13.3 Cr and while the funding doesn't really come as a surprise, I'm sure everyone was wondering who would emerge victorious in getting on to Mitron and Chingari's cap tables.
➡️ The app is expected to cross 25-50M downloads soon as there has been a giant vacuum created by TikTok's inability to operate. But it is yet to be seen if these platforms can retain users and continue to grow once TikTok's ban is overturned (which is likely)
➡️ And while the Chinese apps being banned has certainly created space for homegrown apps to be built and scaled, it doesn't necessarily mean that the economics for social apps will automatically make sense. ShareChat and several other Indian social apps have been operational at scale for a while and are yet to make the unit economics work.
2. https://bit.ly/2NNhXRN: Marico acquires men's grooming startup Beardo
➡️ Marico, a consumer goods conglomerate, has acquired Beardo which is a men's grooming startup selling hair & shaving products.
➡️ Marico had previously acquired 45% of the company back in 2017 to strengthen their presence in the men's grooming sector and has now acquired the additional 55% of the company.
➡️ The company had raised around $5M in 2016 and was backed by Venture Catalysts along with other investors and while the valuation of the acquisition is unknown, Marico had acquired the initial 45% for around ₹50-60 Cr so all investors likely made some multiple on their investment.
➡️ Men's grooming as a space has really exploded in the last decade, and tripled from ₹3,200 Cr → ₹10,000 Cr from 2016 to 2020. In an industry where exits rarely take place, it's heartening to see a company create & grow their niche business and team-up with a huge name in the FMCG space that can take the brand further.
Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/runophilia/status/1278389460728639488
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