Roll-up e-commerce startup Goat Brand Labs has acquired an 80% stake in the home and lifestyle brand Chumbak, CEO and co-founder Rishi Vasudev told FE. According to media reports, Chumbak’s recent annual revenue was Rs 100 crore, while Goat typically pays 1.5 times the company’s revenue, which puts the deal value at roughly Rs 100-120 crore.

With a solid digital and offline presence, Chumbak is popular among women and caters to all youthful customers, making it an attractive acquisition for Goat, which plans to grow Chumbak’s revenue to Rs 500 crore by 2025. In addition to Chumbak, which marks its largest acquisition to date, Goat has acquired four other startups, the names of which will be announced in the coming weeks. Additional purchases will include companies in the home, fashion, beauty, and personal care sectors, Vasudev said.

The partnership with Chumbak is the perfect recipe to grow the brand exponentially by expanding its online and offline global reach through a technology and data-driven approach,” he added. Chumbak was founded by Vivek Prabhakar and Shubhra Chadda, whose clients’ return rate is about 50%, much higher than the industry average of 20-30%. Goat has 20 startups in its portfolio, including The Label Life, Pepe Inner Fashion, etc.

The Flipkart-backed startup is in advanced talks to acquire around 8-10 other companies and strengthen its position in a market where players such as Mensa Brands, Evenflow, GlobalBees, Powerhouse91, 10club and UpScalio compete.

To fund its acquisition plans, Goat is also preparing to raise capital and will close the round in about two to three months. The company was founded in May 2021 by Vasudev and Rameswar Misra and has raised nearly $90 million from Tiger Global and others. It aims to achieve $1 billion in revenue by 2025.