- Acquco — a platform focused on acquiring third-party sellers on Amazon — announced recently that it has closed a $160 million Series A round. These are the details.
Acquco — a platform focused on acquiring third-party sellers on Amazon — announced recently that it has closed a $160 million Series A round to fund its aggressive growth plans fueled by its unique operational edge and unparalleled understanding of Amazon. This funding round included participation from CoVenture, Singh Capital Partners, Crossbeam, and other notable investors like Aman Bhutani (GoDaddy CEO). And the proceeds will be used to scale its portfolio to over $500 million of revenue by 2022 and continue building its technology platform.
As consumer purchasing behavior has been shifting to online channels with e-commerce penetration increasing more in 2020 than it has over the prior 5 years. And Amazon has been the largest beneficiary of this trend and is estimated to capture 40% of all e-commerce activity in the U.S. But while the majority of Amazon sellers have benefited from these tailwinds, millions of successful sellers have also naturally reached a “growth wall” and do not have the capital or broader expertise to scale their business further. This is how Acquco is planning to help.
Utilizing its proprietary lead generation systems, Acquco quickly identifies the best businesses to buy and leverages flexible founder-friendly deal structures — which allow sellers to immediately monetize while also participating in the future growth of their brand. And post-acquisition, the company employs unique operational playbooks and technology which automates processes to accelerate the top-line growth of brands across Amazon and other retail channels. On average, Acquco achieves more than 100% revenue growth after migrating the brand onto its platform.
Acquco was built utilizing the unparalleled Amazon and M&A expertise of the founding and executive team. The company founders Raunak Nirmal and Wiley Zhang have built multi-million dollar Amazon businesses, consulted for the largest Amazon sellers in the world, and also built tools that empower thousands of Amazon sellers to maximize their profits. And Acquco’s Chief Strategy Officer Jerel Ho — who most recently led Corporate Development and Strategy at WeWork and was previously a career investment banker — has closed over $40 billion in M&A deals.
Utilizing its optimized playbooks and technology, Acquco closes deals in less than 30 days – faster than competitors. And it has also enabled the company in less than a year to efficiently scale, achieving more than $100 million in revenue to date while deploying less than $2 million of equity capital.
KEY QUOTE:
“My unique experience at Amazon originating and leading core initiatives with over $1 billion in annual revenue impact provided me deep insights into the primary pain points and challenges that Amazon sellers face everyday. Combining these perspectives with over 7 years of direct experience operating and innovating within the Amazon ecosystem has allowed me to generate a truly differentiated edge and understanding of the Amazon universe. Leveraging this edge, Acquco has been able to rapidly scale in less than a year and raise a substantial amount of capital – allowing us to further accelerate the growth of our competitive moat.”
— Raunak Nirmal, Acquco founder and CEO
“Acquco’s unique position versus its competitors, driven by the deep Amazon experience and strong vision of its founders, has created an unparalleled investment opportunity in a massive, growing market. We are incredibly excited to partner and work alongside their team to take the next step & drive growth at scale.”
— Ali Hamed, founder of CoVenture
