Berlin’s Razor Group raises $400M to buy and scale Amazon Marketplace merchants
May 04, 2021 at 11:39
Razor Group itself is not even a year old but has been building out its business at a fast pace.
Assuming the debt capital it’s now raised is put to use, Ahluwalia believes Razor Group will cross $480 million (€400 million) in sales in the next 12 to 15 months.
As a point of comparison, Thrasio, one of the older players in this current market, was founded in 2018 and has 100 brands in its stable.
By one estimate there are about 5 million third-party sellers on Amazon today, and their ranks are growing exponentially, with more than 1 million sellers joining the platform in 2020 alone.
Thrasio has in the past estimated to me that there are probably 50,000 businesses selling on Amazon via FBA making $1 million or more per year in revenues.
“It’s perfectly acceptable to build an FBA-based business, but at some point you can move beyond that,” Ahluwalia said in an interview.
“We want to transform what we see as the levers of business operations in this space.
“Technology runs through the whole business,” she said, started with the acquisitions, where Razor is identifying the most interesting companies faster than others, she said.
“We look at thousands of data points,” building algorithms, she continued, “to flag what we want to acquire.
Being early also means building better relationships with the owners of these businesses, with less time pressure.
“We are excited to partner with Tushar, Chris, and the rest of the Razor Group team.
“We are pleased to make this investment in Razor Group to support the company’s strong growth momentum as it continues to diversify its portfolio of brands and expand into new markets,” added Dan Worrell, MD at BlackRock.