Thrasio: $260 Million Funding And $1 Billion Valuation

By Amit Chowdhry ● Jul 20, 2020
  • Thrasio — the largest acquirer of Amazon businesses and a top 25 seller on the e-commerce platform — announced that it has raised $260 million in Series C funding and a $1 billion pre-money valuation

Thrasio — the largest acquirer of Amazon businesses and a top 25 seller on the e-commerce platform — announced that it has raised $260 million in Series C funding led by private equity investor Advent International. This funding round was raised at a $1 billion pre-money valuation.

Thrasio is known for acquiring category-leading Amazon third-party private label businesses and then seamlessly onboard, optimizes, and operates those brands. And the company drives blistering rates of organic growth through high-quality marketing, product development, operations, and supply chain management.

Thrasio has been profitable since it launched in July 2018 even while growing at a nearly unprecedented pace. And in the past two years, the company’s revenue has doubled (on average) every 73 days. So far, Thrasio has acquired well over 50 Amazon businesses, including 17 in the last quarter. With more than $300 million in pro forma revenue and 6,000+ products, Thrasio is one of the top 25 sellers on Amazon.

Now Thrasio has over 300 FTE employees and consultants across 11 cities and 3 continents. And it has been actively hiring during the COVID-19 pandemic, adding over 90 new people since April.

Advent has over $49 billion under management and significant global reach along with three decades of investment experience in the retail and consumer, and technology industries.

KEY QUOTES:

“People ask how we’ve been able to grow so quickly. It’s pretty simple: We build relationships with sellers and others in the Fulfilled by Amazon ecosystem. We’re a resource to sellers to help them grow, and we’re here to acquire their business and give them a well-deserved pay out when the time is right. We pay well in any economic climate and share the financial gains from growing their brands post-acquisition. So far, we’ve paid sellers more than $100 million.”

“There’s no question that our team is the special sauce here, and we’re eager to keep building. We’ve tried to make Thrasio an exceptional place to work, which may be why we’ve had less than 1% employee turnover.”

“Our financing strategy has always been to focus first on finding the right partner, and to let everything else follow from that. The Advent team is extremely smart and easy to work with, and every time they said they’d do something, they did it. With Advent as a partner, Thrasio will be able to accelerate its growth, acquire larger businesses, launch new products, and form meaningful strategic partnerships.”

— Thrasio co-CEO and co-founder Carlos Cashman

“We believe in doing exactly what we say we’ll do. That’s why we close on 98% of our term sheets, why we’ve paid 93% of our earn-outs, and why nearly a quarter of our acquisitions are referred to us by people who already sold their business to Thrasio.”

“This is a unique moment in the consumer products space. The competitive advantages that have defined the market leaders for the past 50 years – strong retail distribution, brands that can shape purchase intent, the scale to use TV effectively, and highly concentrated property, plant & equipment – are rapidly becoming irrelevant. The result: a tumultuous $13 trillion market where the next generation of competitive advantages are being forged by companies like Thrasio. We were looking for the right investor – a partner who could embrace our audacious vision.”

“A misunderstood detail about Amazon often translates to an alarmist headline, but stories about Amazon’s contributions to society are decidedly infrequent. Amazon’s Third Party Seller program has enabled tens of thousands of entrepreneurs to become millionaires and may be the greatest wealth creation platform in history, but not much is written about that.”

— Thrasio co-CEO and co-founder Joshua Silberstein

“We raised our $2 billion Tech fund alongside our $17.5 billion global fund with the intention of investing in growth opportunities for emerging companies. We’re excited that Thrasio is the first growth equity investment for Advent Tech. Thrasio is a leader in a $200 billion, fast-growing and highly fragmented market. They’re not just enhancing and accelerating e-commerce, they’re helping to revolutionize it. We look forward to supporting Thrasio’s continued growth through M&A and expansion into new channels and services.”

— David Mussafer, Managing Partner and Co-Chair of Advent’s global Executive Committee

“What household has not been grateful that Amazon has been able to stay up and running during COVID, remaining a trusted and price-conscious solution while meeting the unprecedented needs of people who have been unexpectedly stuck at home? It is truly Herculean what Amazon has accomplished over the last four months.”

— Thrasio President Danny Boockvar

“It’s rare that you come across a company like Thrasio. As they displace the consumer products giants of the past – while reinventing omnichannel commerce for the future – it won’t be long until people are comparing them to transformative companies like Apple or Tesla.”

— Jason Finger, Chairman, Upper90 and Founder of Seamless