Berlin Manufacturers Group, now valued at over $ 1 billion, is elevating $ 700 million to purchase and scale retailers who promote on marketplaces like Amazon – TechCrunch

Berlin Brands Group – one of the new wave of e-commerce startups looking to build lucrative economies of scale by buying up smaller brands that sell on marketplaces like Amazon and using technology to operate and scale them more efficiently, has a large round of funding to accomplish this mission. The startup has completed a $ 700 million round of equity and debt that it will use in part to further build its fulfillment and logistics infrastructure and technology platform, as well as to purchase additional companies.

BBG confirmed the investment – one of the largest in the industry to date – increases its valuation to over $ 1 billion.

Bain Capital leads the equity portion of this round. The deal also calls for a previous investor, Ardian, to be bought out for an undisclosed amount separate from the $ 700 million raise.

This financing round is the second announced by BBG this year. In January it announced it would invest $ 302 million from its own balance sheet on M&A, and in April it announced a $ 240 million debt round. These last $ 700 million differ in that they include the equity component in addition to equity.

BBG initially began developing its own products and selling them on Amazon and other marketplaces – founder and CEO CEO Peter Chaljawski was a DJ in a previous life and initially focused on audio equipment that he developed himself.

Over time, it saw an opportunity to diversify this into a broader consolidation game where BBG also acquires third-party brands and incorporates them into its business, taking the opportunity to give the owners of the third-party companies an exit route and bring them in with smaller brands more scalability, more marketing and more technology to improve the efficiency of your operations.

Today the mix includes 3,700 products and 14 own brands, including Klarstein (kitchen appliances), auna (home electronics and music devices), Capital Sports (home fitness) and blumfeldt (garden). BBG claims to have access to around 1.5 billion e-commerce customers in various marketplaces where it sells goods in Europe, the UK, the US and Asia. Notably unlike many others in the same space as BBG, it’s geared towards more than Amazon, with around 100 channels in 28 countries.

This list of “many others in the same room” is long and seems to be growing every day. Yesterday, two of them – Heroes and Olsam – raised $ 200 million and $ 165 million, respectively. Others taking the opportunity to consolidate merchants who sell through Fulfillment by Amazon are Suma Brands ($ 150 million); Elevate Brands ($ 250 million); Perch ($ 775 million); Factory14 ($ 200 million); Thrasio (currently probably the biggest of all in terms of reach and raised money and ambitions), Heyday, The Razor Group, Branded, SellerX, Berlin Brands Group (X2), Benitago, Valoreo and Rainforest from Latin America and Una Brands from Asia.

As more and more startups enter the battle, the battle to buy the best third-party brands becomes more of a challenge, and Bain’s support should help BBG hold its own against that competition.

“With the commitment of Bain Capital and the secured additional financing, we have set our next milestone on our way to building a global brand house,” said Chaljawski in a statement. “This enables us to tackle the strategic goals of acquiring and expanding brands worldwide, as well as operational and logistical expansion. Bain Capital’s experience working with founders around the world will help us continue our evolution as a leading e-commerce company at branding scale. “

“BBG is a disruptive leader in the rapidly changing consumer goods sector. Their ability to develop and scale brands through their highly efficient e-commerce platform in line with current consumer trends gives the company tremendous growth potential in a rapidly growing market, ”added Miray Topay, MD at Bain Capital Private Equity. “We have partnered with many founder-led management teams and look forward to helping Peter and his team achieve their goal of becoming a global leader in consumer e-commerce.”

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