Mensa Brands Secures ₹48 Cr Debt from Stride Ventures

302

In a strategic move to strengthen its working capital and prepare for future expansion, BRND.ME (formerly Mensa Brands) secures ₹48 Cr (approximately $5.6 Mn) in debt funding from its existing investor, Stride Ventures. This resolution was approved by the board in March, allowing the issuance of 4,800 non-convertible debentures (NCDs) to raise the capital. As per filings from the Registrar of Companies (RoC), this infusion will support the unicorn’s operational liquidity and general corporate purposes.

Founded by former Myntra CEO Ananth Narayanan in 2021, BRND.ME is a house of brands startup backed by marquee investors like Tiger Global, Accel, Prosus, and Norwest. The company owns and operates multiple direct-to-consumer (D2C) brands including Dennis Lingo, Pebble, and MyFitness. BRND.ME, which rebranded from Mensa Brands, focuses on acquiring and scaling promising digital-first consumer brands using its tech-enabled platform.

Alongside the funding announcement, BRND.ME also revealed plans to increase its authorised capital from ₹163 Cr to ₹340.6 Cr. This includes the creation of 17.6 Cr equity shares and 16 lakh Series D compulsorily convertible preference shares. These steps reflect the startup’s roadmap for long-term growth, capital flexibility, and strategic corporate actions.

The startup has raised over $300 Mn to date and continues to compete against players like The Good Glamm Group and Globalbees. In FY24, BRND.ME trimmed its net loss by 31% and grew its revenue to ₹557.66 Cr. The company claims profitability as of September 2024. This debt funding reaffirms investor confidence and positions BRND.ME for a more resilient and aggressive growth trajectory.

1. Mensa Brands Secures ₹48 Cr Debt from Stride Ventures

1.1 Understanding BRND.ME’s Business Model

BRND.ME operates as a house of brands, acquiring and scaling promising consumer-facing D2C startups under one roof. By leveraging technology, the startup accelerates brand performance through optimized supply chains, performance marketing, and integrated distribution. This model helps BRND.ME achieve scale efficiencies across its portfolio.

1.2 Revenue Streams and Operational Strategy

The company generates the bulk of its revenue from product sales across various consumer categories like fashion, fitness, accessories, and electronics. Brands like Dennis Lingo (menswear), MyFitness (health foods), and Pebble (smart gadgets) contribute significantly to its income. BRND.ME applies a data-driven approach to growth, using deep analytics and performance insights to drive sales across marketplaces and D2C platforms.

1.3 Founders and Their Vision

Ananth Narayanan, founder and CEO, brings a legacy of scaling digital businesses from his time as CEO at Myntra and Medlife. His vision for BRND.ME is to create India’s largest digital-first consumer company by acquiring, nurturing, and globally scaling breakout brands. Under his leadership, the company has adopted a technology-first approach to modern retail.

2. Mensa Brands Secures Debt Amid Growth Push

2.1 Board Approval and Issuance of NCDs

In March 2025, BRND.ME’s board approved a resolution to raise ₹48 Cr through the issuance of 4,800 non-convertible debentures. This debt issuance, backed by Stride Ventures, signals strong investor trust in the brand aggregator’s operational strategy and financial management.

2.2 Purpose Behind the Funding

The funds are earmarked for working capital needs and general corporate activities. This includes operational overheads, supply chain improvements, and strategic brand integrations. Debt capital provides the company with flexibility without diluting existing equity holders.

2.3 Increased Authorised Capital: Fuel for Future Plans

In parallel with the debt raise, BRND.ME increased its authorised share capital from ₹163 Cr to ₹340.6 Cr. The increase includes 17.6 Cr equity shares and 16 lakh Series D CCPS. This move signals the startup’s preparedness for future equity rounds, mergers, or other corporate maneuvers.

3. The Funding Landscape: Strategic Implications

3.1 Track Record of Funding

BRND.ME has raised over $300 Mn in equity and debt funding since inception. It counts Tiger Global, Accel, Norwest, and Prosus among its key investors. The startup’s ability to secure new rounds from existing investors highlights its consistent performance.

3.2 Competitive Landscape

BRND.ME competes with other unicorns like The Good Glamm Group and Globalbees, which operate under similar house of brands models. However, BRND.ME’s edge lies in its tech integration, operational efficiency, and founder experience.

3.3 Financial Highlights: Signs of Stability

In FY24, BRND.ME reported an 11.6% increase in operating revenue to ₹557.66 Cr, up from ₹499.63 Cr in FY23. Its net loss narrowed by 31% to ₹155.85 Cr, indicating improved cost management and operational discipline.

4. Mensa Brands Secures Debt for Capital Optimization

4.1 Profitability Claims and Strategic Vision

The company announced that it turned profitable in September 2024. This aligns with its strategy of acquiring high-potential brands, improving their unit economics, and scaling them sustainably.

4.2 The Role of Stride Ventures

Stride Ventures, one of India’s leading venture debt firms, has consistently backed BRND.ME. This latest round further strengthens their relationship and enables BRND.ME to focus on growth without diluting equity.

5. Learning for Startups and Entrepreneurs

5.1 Use Debt Strategically

Raising debt instead of equity can help preserve ownership and control, especially when working capital is the need of the hour.

5.2 Build Investor Trust Through Execution

Repeat funding from existing investors like Stride Ventures reflects trust. Founders must focus on consistent performance and transparent communication to maintain long-term relationships.

5.3 Leverage Tech for Scale

BRND.ME’s tech-first approach to brand aggregation offers a model for startups aiming to scale operations efficiently.

5.4 Keep a Growth-Ready Capital Structure

By increasing its authorised capital proactively, BRND.ME ensures future fundraising won’t be delayed by regulatory constraints. Startups should plan such moves ahead of major expansions.

About The Startups News

When it comes to breaking startup updates and deeply humanized business funding news, The Startups News stands out as a trusted platform. From exclusive coverage like “Mensa Brands Secures Debt” to unique startup learnings, we decode funding moves and business pivots that matter. Entrepreneurs and investors alike rely on us for accurate, SEO-rich, zero-AI-detection content that helps them stay ahead in India’s dynamic startup landscape.