Berlin’s Razor Group raises $400M to buy and scale Amazon Marketplace merchants
The market remains very hot for startups building e-commerce empires by consolidating independent third-party merchants that have gained traction on Amazon’s Marketplace, and in the latest development, Razor Group a Berlin-based startup buying up promising Amazon sellers and scaling them into bigger, multi-channel businesses has closed financing of $400 million to scale its own efforts in the space.
Around $25 million is coming in the form of equity to grow its business and $375 million is in debt to make acquisitions, with target businesses typically already pulling in between $1 million and $15 million in annual revenues.
Austin-based insurance startup the Zebra has raised $150 million in one of the biggest funding rounds of the year.
The company also said it now has a valuation of more than $1 billion, which would give it status as a unicorn, which is an industry term for a startup valued at over $1 billion. I am extremely happy with where the company has gone. While I do think this is a milestone moment to become a unicorn, it still feels like one step along the path, CEO Keith Melnick said. There s still so much opportunity as a company and so much growth potential, I think there s a long runway for growing this company.
While Many Americans Are Not Touching Savings, Others Find It Difficult To Do The Same, Amid COVID
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Damaging events caused by the pandemic such as job losses and big income cuts have made it difficult or impractical for many folks to hoard cash and not dip into their nest egg. Simultaneously, a global poll done by one of the world’s largest independent financial advisory and fintech groups found that 7 out of 10 people will not squander the excess savings acquired from decreased spending and transportation costs. When questioned by the deVere Group ‘Are you likely to spend the majority of the extra money you have managed to save over the last 12 months?’ 72% said ‘no’. Some 16% of respondents said ‘yes’ and 12% ‘did not know.’
/PRNewswire/ Today, Jungle Scout, the leading all-in-one platform for selling on Amazon, released its new quarterly Consumer Trends Report, which explores.
Because of their success, many Amazon sellers are being bought by larger, heavily-funded companies.
Major brand buyers include GOJA, Perch, Thrasio, and Boosted Commerce.
They re trying to create the 21st century version of Procter & Gamble, one attorney explained.
According to Amazon growth agency Jungle Scout, more than 54% of the $386 billion in net sales that the retail platform generated in 2020 came from third-party Amazon sellers.
Between 2019 and 2020, Amazon invested $30 billion in its community of small sellers, spotlighting it in, among other things, a series of commercials outlining the fact that small and medium Amazon businesses sell 6,500 products every minute.
Founded in 2018, the holding company has reached a $1 billion valuation on the strength of folding up nearly 100 Amazon brands. It also reached the pace of acquiring $1.5 million in revenue per day in the first quarter of this year, according to CEO Josh Silberstein.