Razor Group, a startup from Germany that acquires and scales Amazon brands, has raised 25 million euros in a new round. This happened just twelve weeks after it received initial startup financing of five million euros.
The new round consists of equity financing and a credit line. Ten million euros will be contributed by the existing investors, led by Swiss venture capital firm Redalpine. Another 15 million euros came through debt financing, from investor Claret Capital.
One week after similar company raised €55 million
Companies that acquire and scale brands that sell on Amazon are hot. Last week, a similar company called Heroes, raised 55 million euros. Both Razor and Heroes seem to be inspired by Thrasio. This company is from the US and managed to become a unicorn in record time.
Razor and Heroes seem to be inspired by Thrasio.
Funding will be used to further acquire Amazon stores
The 25 million euros will be primarily used to take over profitable Amazon stores. “Our growth forecasts have increased significantly with the new financing,” co-founder Tushar Ahluwalia says. It’s expected that the company’s portfolio will grow from two to eight stores by the end of this year. “And next year we are aiming for 30 stores”, Ahluwalia adds.
Next year, we are aiming for 30 stores.
Market’s full of companies wanting to acquire Amazon dealers
As said, Razor is operating in a market with other money-raising companies, such as Thrasio and Heroes. In Germany alone, there are more companies – like Berlin-based startups Sellerx, Thirstii and Zeelos – who are all looking for Amazon dealers who are willing to sell their business.
But Ahluwalia doesn’t expect a quick consolidation. “The European Amazon market is highly fragmented with many thousands of dealers per marketplace”, he says. “In addition, the FBA model is still relatively young in Europe, and the market for exits is not strongly developed yet.”
The market for exits isn’t strongly developed yet.