Thrasio is one of the newest vertical tech companies on the block. They have recently secured over $100m in funding from previous backers – Oaktree, Advent International, Harlan Capital, Peak6, Upper 90, Western Technology Investment, and River Park Ventures.
Thrasio and other similar aggregators buy up small brands, known for selling everyday products, which are then onboarded, optimized, and operated. They do this by using their data and operational expertise to grow these brands and increase sales.
1. What is Thrasio?
Thrasio 750m serieslundentechcrunch is a digital consumer goods company that acquires top-rated, FBA-based brands that sell essential everyday products. These businesses rely on the Amazon ecosystem to drive sales without the need for a physical storefront.
Based in Walpole, Massachusetts, Thrasio aims to increase brand growth and scale via marketing, search, product development and supply chain management. It currently manages over 40 businesses.
Last year, Thrasio made a profit of $100 million on $500 million in revenues. The new funding round comes as the company is acquiring an average of two or three businesses per week.
2. How does Thrasio work?
Thrasio is an acquisition firm that buys FBA brands from small sellers. It then upgrades the brand’s marketing, product development and supply chain management.
Interested Amazon FBA business owners fill out an application form on Thrasio’s website and the company replies within five days with a letter of intent if the brand fits its model.
In the next five to 25 days, Thrasio carries out due diligence, reconstructs sellers’ profits and losses, and completes legal procedures to finalize the purchase agreement.
Once the acquisition process is completed, sellers receive a cash payout from Thrasio. This allows them to exit their business quickly, escaping the daily grind and risk of running an Amazon FBA brand.
3. Why Thrasio 100m?
Thrasio is a name you can trust, specializing in acquiring and integrating small to medium size Amazon FBA sellers into its ecommerce empire. Its core competencies include brand management, product development, merchandising, inventory management and warehousing. Its newest acquisition, Yardline, has a well documented history and an impressive track record in the space. The company also enlists the aid of a number of external consultants to augment its in-house phalanx. With more than 100 active deals in the works, the company is a hot bed of innovation. With over a hundred employees and 20 new hires on the books, there is plenty of room for growth and improvement.
4. What is Thrasio’s business model?
Thrasio is an e-commerce aggregator that helps Amazon sellers achieve rapid growth. The company acquires, optimizes, and manages top-selling brands.
To do this, the aggregator leverages a deep understanding of brand ranking, rating, and reviews. They also utilize their expertise in supply chain, marketing, and compliance.
Moreover, they offer long-term earnouts to businesses that have exponential growth potential. Once the business is acquired, Thrasio deploys its team of eCommerce experts to scale it.
As an added perk, they typically allow their sellers to stay on a consulting basis after the acquisition. This allows them to continue working on the brand’s growth and help it navigate new challenges.
5. What is Thrasio’s valuation?
Thrasio is a new type of startup that specializes in acquiring, operating, and optimizing Amazon seller businesses login wmlink/2step. It’s one of the leading e-commerce “aggregators” that buy fast-growing digital-first brands and scale them on Amazon.
It was founded in 2018 by serial entrepreneurs Carlos Cashman and Josh Silberstein. Since then, the Boston-based company has grown to be one of the fastest U.S. companies to reach profitable unicorn status.
As of this writing, the startup’s valuation stands at $5 billion to $10 billion. That figure includes the company’s recent $1 billion funding round.
