Just 12 weeks ago, Razor Group, also raised 5 million euros (about $5.9 million) in initial financing.
The new round, the report stated, comes with equity financing and a credit line, with 10 million euros (about $11.9 million) coming from existing investors, led by Sweden’s Redalpine, and another 15 million euros (about $17.8 million) from debt financing through Claret Capital.
The money will be used mostly to take over profitable Amazon companies, with growth forecasts having increased “significantly” with the new financing, according to Co-Founder Tushar Ahluwalia, per the report.
The company’s portfolio could grow from two to eight stores by the end of the year, the report stated, and Ahluwalia said the company is “aiming for 30 stores” next year.
Razor is operating in a market full of companies working in fundraising, like Thrasio and Heroes, among others looking for Amazon dealers that want to sell their businesses. However, Ahluwalia said he doesn’t think any consolidation will be quick, the report stated.
“The European Amazon market is highly fragmented with many thousands of dealers per marketplace,” he said, according to the report. “In addition, the FBA [Fulfillment by Amazon] model is still relatively young in Europe, and the market for exits is not strongly developed yet.”
Thrasio, according to PYMNTS, has worked on boosting its Amazon-centric business model, which Co-Founder and CEO Joshua Silberstein said is part of the “fundamentally changing” market. PYMNTS reported that Thrasio’s particular strength comes from the onboarding and optimization of Amazon businesses, with the company claiming a $260 million Series C round led by global investor Advent International.
Silberstein said the company evaluates potential targets for acquisitions by looking at what it believes a customer would be enthusiastic about receiving and opening in the mail. Constant, quick delivery is important, too, with the delivery needing to be “clear and simple.”