Mensa Brands: Unraveling the Journey to Unicorn Status and Beyond

Mensa Brands, based in Bengaluru, swiftly attained unicorn status under the leadership of Ananth Narayanan, disrupting traditional startup norms. Founded as a ‘house of brands,’ Mensa aims to transform digital-first brands across sectors. This article explores Mensa’s journey, its unique model, and its diverse subsidiary brands.

Founded in May 2021, Mensa Brands addresses challenges faced by emerging brands in India’s fashion and beauty sectors. Founder Ananth Narayanan’s vision leverages his Myntra and Medlife experience to guide brands in vital areas like inventory management and technology development. By November 2021, Mensa had secured $135 million at over $1 Bn valuation, becoming the fastest Indian startup to reach unicorn status.

Despite initial skepticism, Mensa was able to gain industry trust. By October 2021, it acquired a controlling stake in 10 new-age brands, with revenues in the range of ₹25-35 crore and annual growth rates of 70-80%. These brands are projected to grow at least 10 times in the next five years. Mensa announced profitability in June 2022, with projected revenues of ₹1,500 crores in its first 12 months as mentioned here.

According to recent reports, in a strategic move, Mensa Brands raised debt funding of $40 Mn in October 2023 from EvolutionX Debt Capital. This infusion, coupled with the company’s equity funding of over $200 million from investors like Accel Partners, Prosus, Tiger Global, Stride Ventures, and others, positions Mensa Brands for continued growth

Mensa’s eclectic portfolio spans various sectors, emphasizing its commitment to become India’s largest D2C tech-led house of brands. Subsidiary brands include Dennis Lingo, Pebble, Karagiri, KatchOn, Trust Basket, PartyPropz, Villain, MyFitness, Majestic Pure, MensXP, iDiva, and Hypp.

Mensa envisions partnerships, investments, and acquisition of over 50 brands in the next 2-3 years. The startup aims to establish its existing brands as household names and expand its influencer and social media networks.

Mensa Brands faced a significant challenge in May 2023, when it initiated layoffs, affecting 30 employees from the recently acquired India Lifestyle Network. This decision, accounting for 5% of Mensa’s total workforce, surprised both employees and industry experts, given the company’s stellar performance in the Indian e-commerce sector and strong investor backing as discussed here.

Mensa Brands, while achieving unicorn status, redefines the startup model, carving a niche in the ecosystem. Its journey and diverse portfolio attest to the team’s vision and execution capabilities. As the Indian e-commerce market intensifies, Mensa Brands is likely to play a pivotal role, offering expertise and funding. With fresh funds and ongoing innovation, Mensa Brands continues shaping the startup landscape’s future.

Startup Funding Summary

Xpressbees, Pune-based logistics tech startup, has raised $80 Mn in funding from Teacher Venture Growth, Blackstone Growth, TPG Growth, ChrysCapital, Khazanah Nasional Berhard, Alibaba Group, Elevation Capital, Investcorp, Norwest Venture Partners & Gaja capital – Read More

Zepto, Mumbai-based quick commerce company, has raised $31 Mn in series E funding from Good water capital & Nexus venture partners – Read More

Euler Motor, Delhi-based electric vehicle startup, has raised $14 Mn in series C funding from British International Investment (BII) and Green Frontier Capital – Read More

Sequretek, Mumbai-based cybersecurity firm, has raised $8 Mn in series A funding from Omidyar Network India, Narottam Sekhsaria Family Office & Alteria Capital – Read More

Hearzap, Hyderabad-based Health-tech startup, has raised $6 Mn in series A funding from 360 One Healthcare Opportunities Fund – Read More

M&A Snippets

Ahmedabad-based pharmaceutical company Eris lifesciences has acquired Banglore-based biopharmaceutical company Biocon biologics Ltd for an $44 Mn – Read More