Neato announced it has raised $25 million in growth capital to expand its second-party (2P) eCommerce model across global marketplaces. The round was led by Advantage Capital and will support the company’s expansion beyond Amazon, including the launch of new operations centers in Las Vegas and Chicago with integrated eCommerce preparation capabilities.
Neato operates as an exclusive online retail partner for consumer brands, purchasing inventory directly and managing the full lifecycle of marketplace operations, including listings, advertising, logistics, brand protection, and analytics. The company’s model is designed to provide brands with a more integrated and aligned alternative to traditional agencies or fragmented service providers.
The funding will also be used to expand Neato’s AI agent stack and scale its platform across additional eCommerce channels, as demand grows for operators that can help brands navigate increasingly complex and fragmented online marketplaces.
Founded in 2018, Neato initially operated as a wholesale distributor before evolving into a full-service commerce partner after identifying challenges brands faced in managing their Amazon presence. The company now serves a portfolio of consumer brands across categories including pet, grocery, beauty, supplements, and personal care.
The raise reflects broader investor interest in the commerce enablement sector, where capital is shifting toward models that align incentives with brand performance and offer end-to-end operational support.
KEY QUOTES:
“Most brands at our scale have two bad options — hand your business to a massive operator where you’re one of hundreds, or try to figure out Amazon yourself with a patchwork of internal hires, agencies and consultants. We built a third option. We buy the inventory, manage everything from advertising to logistics to brand protection, and run a portfolio that every brand gets a team that wakes up thinking about their business every day. There’s real capital flowing into this category because the model works. This investment lets us take it beyond Amazon into every channel where our brands’ customers are shopping.”
Anthony Connelly, Co-Founder And Chief Executive Officer, Neato
“The e-commerce enablement sector is at an inflection point. Capital is flowing toward operators that align their economics with brand success rather than extracting fees from complexity. Neato’s 2P model, combined with their expansion beyond Amazon into other channels, positions them at the center of where marketplace commerce is heading.”
Philip Ruppel, Principal, Advantage Capital
