Perch Raises $123.5 Million Led By Spark Capital

By Noah Long ● October 21, 2020
  • Perch — a technology-driven commerce company that buys and operates top Amazon Marketplace businesses with top products in their respective categories — announced it has raised $123.5 million in a new round of funding

Perch — a technology-driven commerce company that buys and operates top Amazon Marketplace businesses with top products in their respective categories — announced it has raised $123.5 million in a new round of funding. Including this round of funding, the company has raised over $130 million.

The funding round was led by Spark Capital and includes past investor Tectonic Ventures with Boston Seed as a new investor. And Perch will use the funds to continue to acquire category-leading products and companies, build out its core team, and further invest in its technology platform.

Third-party sellers — with an estimated gross revenue of over $200B in 2019, and growing at a rate greater than 50% YoY in 2020 — make up over half of Amazon’s retail revenue. Despite the fact that 86% of third-party sellers are profitable, there are often limited options and resources available for these entrepreneurs to take their products to the next level. This is what Perch is focused on.

Led by experienced executives from Wayfair and Bain & Company, Perch is buying high-quality consumer products and brands that have a steady history of strong customer reviews and they are consistently one of the top products within their category and that demonstrate an opportunity for continued growth.

Perch’s approach is to work fairly and transparently with entrepreneurs to move rapidly and cost-effectively through the acquisition process, benefitting both entrepreneurs and the company. And one of Perch’s more recent acquisitions is Satina — which sells women’s leggings and is an Amazon’s Choice product with over 28,000 reviews and recent coverage in US Weekly and Yahoo News.

KEY QUOTES:

“There are millions of entrepreneurs and small businesses selling great products on Amazon’s marketplace. At the same time, more people are shopping online and looking to do their buying from the safety and security of their home. We are excited that this additional investment will allow us to accelerate our ability to acquire and grow leading FBA businesses that have long-term potential.”

— Chris Bell, CEO of Perch

“More and more of our acquisitions are coming from introductions and recommendations of prior sellers we’ve worked with – so our approach of treating each seller fairly and as a true partner is key to our success.”

— Nate Jackson, VP of Acquisitions at Perch

“The Perch team has the M&A, eCommerce, and Amazon experience to understand what makes a quality and scalable consumer product and take those products to the next level post-acquisition. We are beyond excited to lead this round. Perch is already off to an exceptionally strong start. Given the booming eCommerce market, I expect we will continue to see record numbers and additional acquisitions this year.”

— Alex Finkelstein, General Partner, Spark Capital