Trase was acquired by Upscalio as part of its strategy to build a diversified portfolio of brands in utility categories in 2021.
Trase, a direct-to-consumer (D2C) footwear brand, has reacquired its brand from the roll-up company Upscalio. This move was followed by a $500k Angel round post-acquisition, led by notable investors Deep Bajaj and Mohit Bajaj, co-founders of Sirona Hygiene, along with Shiven Malhotra, Vikas Gautam, and Rohit Jain.
Established in 2016, Trase witnessed substantial growth under the leadership of Jitin Goel and Dhruv Gupta, achieving an impressive annual recurring revenue (ARR) of 18 crores by 2020, entirely self-funded.
In 2021, Trase was acquired by Upscalio as part of its strategy to build a diversified portfolio of brands in utility categories. However, due to a strategic shift focusing on brands specifically in the Home and Kitchen categories, a mutual decision was reached with the 'Trase' promoters and new investors to divest the brand.
Jitin Goel and Dhruv Gupta said, "We're now focused on scaling the brand and are optimistic about regaining our leading position in the market within this financial year."
Gautam Kshatriya, CEO of Upscalio, commented, "Despite the success of Trase, it did not align with our long-term strategy. We are pleased to divest it back into the capable hands of its original founders and new investors, who are well-positioned to scale the brand further."
This episode underscores a sophisticated dimension of the roll-up economy, illustrating how strategic decisions or financial constraints can lead to innovative solutions when approached with good intent, according to a company statement. In this case, the dialogue resulted in the transfer of a brand back to its founders, facilitating growth and reinforcing the entrepreneurial spirit.