Rainforest Raises $20M in New Funding Round

Rainforest Secures $20 Million in Pre-Series A Funding

Singapore-based e-commerce aggregator, Rainforest, has successfully completed a $20 million pre-Series A funding round. Monk’s Hill Ventures spearheaded the investment.

Investment Details and Previous Funding

The funding round saw participation from January Capital, Crossbeam Venture Partners, Amasia, and Lo & Behold Group. Returning investors Nordstar and Insignia Venture Partners also contributed to this round.

In May, Rainforest previously announced a funding combination of $6.55 million in equity and a $30 million debt facility. This latest capital injection brings the company’s total available acquisition funds to over $50 million.

Company Focus and Strategy

Rainforest, established by former leaders from Carousell and Fave, concentrates on acquiring Amazon brands primarily located in Asia. The company’s ambition is to emulate the business model of consumer goods giant Newell Brands within the e-commerce space.

Rationale for Additional Funding

According to co-founder and CEO J.J. Chai, the decision to raise further funding stemmed from a doubling of their brand portfolio since the last funding round. Furthermore, Rainforest has several significant acquisitions currently in progress.

Initially aiming for $8 million to $12 million, the company increased its target to $20 million due to strong investor demand. These funds will be allocated to brand acquisitions, talent acquisition, and the development of its technological infrastructure.

Funding Structure and Debt Facility

This funding round consisted solely of equity financing. Rainforest has not yet fully utilized the debt facility secured from Accial earlier in the year.

Growth and Expansion Plans

Since its launch in January 2021, Rainforest has successfully acquired six brands. This includes a $3.6 million acquisition of a brand based in China, representing its initial expansion into that market.

The company intends to triple its brand portfolio by the end of the current year. Rainforest’s strategy post-acquisition involves scaling brands through optimized inventory management, cost reduction, and expansion into new marketplaces and distribution networks.

Rainforest reports that its acquired brands have experienced a greater than 50% increase in annual growth rates following integration.

Key Personnel Additions

Rainforest has bolstered its leadership team with two key hires:

• Yev Ivanko, formerly co-founder and CEO of NimbleSeller, joins as Vice President of Acquisitions.
• Christine Ng, with prior experience in marketing and branding at Sephora, ShopStyle, Luxola, and Shopbop, has been appointed as Vice President of Brands.