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Home Business & Finance SellerX raises $118M to buy up and grow Amazon marketplace businesses –...

SellerX raises $118M to buy up and grow Amazon marketplace businesses – TechCrunch

Document Analysis NLP IA

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Subjectivity0.50199037999038
probably it's an affirmation
Affirmation0.45496894409938

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Summary (IA Generated)

As Amazon’s Marketplace continues to grow and mature, a new opportunity has emerged in the world of e-commerce for a new breed of startups to consolidate the most promising of the smaller businesses that sell via Amazon’s platform, and build out their own economies of scale within that ecosystem.

In the latest development, SellerX — a new outfit in Berlin — has closed a round of $118 million (€100 million) that it plans to use to roll up smaller enterprises that use Fullfilment by Amazon for payments, logistics and delivery for their products.

The round is being co-led by Cherry Ventures, Felix Capital and TriplePoint Capital, with participation also from Village Global, with Zalando co-founder David Schneider, Shutterfly CEO and former Amazon UK CEO Chris North, and the founders of KW Commerce, a big Amazon seller out of Germany (selling mobile phone accessories and home goods), also participating.

Notably, this $118 million is a seed round for the company, the first real money that it has raised to date, and it comes in the form of some equity, but mostly debt, which SellerX will use for acquisitions to play out its strategy, in the words of Malte Horeyseck (who co-founded the startup with Philipp Triebel) to become “the digital Procter & Gamble.

It has made one acquisition to date; and although it declined to disclose to me what it is, Horeyseck said that it, combined possibly with other acquisitions it will make in the coming weeks, will give SellerX a revenue run rate of €20 million by the end of this year.

The horse has well and truly bolted in the world of Amazon marketplace roll-ups: the last several months have seen a number of startups raise large rounds of funding, with sizable proportions of the sums in debt, in order to go out and consolidate the most interesting smaller companies that are selling and getting their orders fulfilled by Amazon.

Earlier this week, London-based Heroes announced a $65 million round.

The opportunity is a clear one: the Amazon marketplace has quickly become a major player in the world of e-commerce — a position that has become even more apparent this year, during the Covid-19 global health pandemic, which has led to many people turning away from in-person shopping either out of choice or requirement (in the UK, for example, all ‘non-essential shops’ are currently closed for in-person shopping).

In the last quarter the company, which reported revenues of $98 billion, saw product sales of $52 billion, with estimates putting the number of marketplace sellers at just over 50% of that figure.

At the same time, we’ve seen a flourishing of the concept of “D2C” where companies are bypassing traditional retailers and building their own brands for selling their own unique products on their own terms.

“I think basically everything we are doing will help Amazon have a better quality marketplace,” he said.

Filip Dames, founding partner of Cherry Ventures, said in a statement, “The diverse seller landscape on Amazon provides a unique opportunity to acquire some category-winning, highly profitable products, empower them through technology, and build them into the next-generation consumer brands.

The founders Malte and Philipp combine decade-long e-commerce and buy-and-build expertise, which uniquely positions them to capture this opportunity.


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