Buying up Amazon FBA stores and scaling them in-house is a hot business model right now. Last week Heroes launched in the UK with a $65 million seed round and Berlin-based Razor Group raised €25 million. Today, fellow Berlin business SellerX announced it has secured €100 million of financing.
The seed round, which is a mix of equity and debt, was led by Cherry Ventures, Felix Capital and Silicon Valley-based TriplePoint Capital, with participation from Village Global. Angels with e-commerce backgrounds joined, too, including Zalando co-founder David Schneider and Shutterfly CEO and former Amazon UK CEO Chris North.
The business model is based on Thrasio, reportedly the fastest US company ever to reach profitable unicorn status. SellerX snaps up Fulfilment by Amazon shops, consolidates them, and turns them out with new branding and growth strategies.
“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,” says Filip Dames, a founding partner of Cherry Ventures.
The German company is growing quickly, too. According to a press release, SellerX acquired its first business at the end of the summer and expects to have an annual revenue run rate of €20 million by the end of the year.
Founders Malte Horeyseck and Philipp Triebel met at Harvard Business School. Over the last ten years, the two have gained combined experience in entrepreneurship, e-commerce, private equity, and roll-up strategies (acquiring small companies and merging them together). Both were living abroad, but to build this new company, they’ve decided to come “home” to Germany, Europe’s largest Amazon market.
Photo: Founders Philipp Triebel and Malte Horeyseck