- Ecommerce Brands recently announced it raised $40 million in funding. These are the details.
Ecommerce Brands — a consumer brand aggregator — recently announced it has raised a $40 million investment with $10 million in equity led by Bearing Ventures, and $30 million in debt. The new funding round will be used to acquire and integrate direct-to-consumer (DTC) brands on the Cart.com platform. And Cart.com is the leading platform around end-to-end e-commerce-as-a-service capabilities (eCaaS) and will enable Ecommerce Brands to expand the acquired DTC brands into marketplaces through its powerful multi-channel capabilities. This multi-channel expansion strategy positions Ecommerce Brands to maximize growth for its portfolio of companies with the “Commerce Everywhere” approach.
Brands individually have difficulty competing against larger retailers and marketplaces since they lack a fully integrated infrastructure, stymieing their ability to scale operations and technology efficiently. And Ecommerce Brands plans to acquire these brands, integrate them onto a vertically integrated platform through Cart.com and grow them to new levels in revenue and profitability. Previously, this could have only been done on marketplaces, which has fueled billions of dollars of investment in marketplace aggregators. But with the help of Cart.com, brands can now be aggregated effectively and profitably on the DTC side.
Since September 2021, Ecommerce Brands has acquired 5 brands, propelling their annual gross sales to more than $150 million. And the company has assembled a team of DTC and marketplace experts with decades of experience growing online retailers including Home Depot and Wayfair. Plus the company plans to aggregate many more promising brands that can plug into the Cart.com offering to achieve meaningful scale faster and more cost efficiently than they could on their own.
“With our team’s domain expertise and the infrastructure we have in place with Cart.com, we are confident we offer business owners the most compelling option for scaling their brand’s reach and revenue. By freeing operators from the headaches and complexity of backend operations and fulfillment, we are helping them refocus their time and effort on servicing their customers, ultimately adding more value with a better experience.”
— Mark Bickenbach, founder and CEO of Ecommerce Brands