Win Brands Group has been around since 2017, but this is the year the DTC roll-up strategy is really beginning to gain steam.
The company owns a slew of online businesses, including the candle company Homesick and the weighted blanket brand Gravity. According to founder Kyle Widrick, things have been building nicely since inception, but thanks to big pandemic-related changes Win is now set up for more growth.
“We’ve built up our holding company and our structure and our process in such a way that we plan to do a third vertical and a fourth and a fifth,” he said on the Modern Retail Podcast. “And this will continue for a decade-plus to come.”
Most recently, this week, Win announced that it raised $40 million and acquired a new company to its portfolio: a hat brand called Love Your Melon. On the program, Widrick spoke about his ambitions for LYM, as well as the crossroads many founders of growing online brands face.
“It was clear they were going to have to hire a tremendous amount of more people to get to success on Amazon and at retail,” said Widrick. “So the question becomes: Do you want to build that yourself and hire those folks yourself? Or do you want to partner with someone like Win?”
Another big topic in the e-commerce space is the rise of roll-up companies. Though Win has been around for a while, other firms -- many of which like Thrasio and Perch are focusing on marketplaces like Amazon -- are continuing to grow and amass large amounts of venture capital funding. According to Widrick, his company and the others are different for a variety of reasons. One of the big ones being branding: Win Brands Group looks to acquire companies with a notable brand, while many other roll-ups are looking for fast-selling SKUs.
Ultimately, said Widrick, that leads to the ultimate ambition he has for his company. “We’re partnering with great founders and making bets on great brands that we plan to be around for the next 20 years-plus,” he said. “These are not flash in the pan -- in and out -- these are long-state businesses that we’re betting on for the long term.”