Heroes, an e-commerce company based in Europe, operates a business model comparable to that of Thrasio, a prominent U.S. firm – focusing on the acquisition and expansion of successful Amazon businesses – has secured $65 million in a recent funding round.

This financing round incorporates both equity investment and debt, and is jointly led by 360 Capital and Fuel Ventures. Upper90, a specialized capital provider for e-commerce ventures, also participated. Notable angel investors include Matt Robinson, a co-founder of GoCardless and Nested, and Carlos Gonzalez-Cadenas, the COO of GoCardless.

Riccardo Bruni, formerly of EQT VC and co-founder of Heroes alongside his brother Alessio, emphasizes, “Debt will be crucial to our company’s future development.” He explains that debt represents a more cost-effective capital source that doesn’t dilute ownership, enabling the team and existing investors to maintain their stake in Heroes over the long term.

Heroes aims to become the leading acquirer and operator of “Fulfillment by Amazon” (FBA) brands in Europe. The company intends to consolidate high-performing FBA businesses across diverse categories, including baby products, pet supplies, homeware, kitchenware, garden items, DIY products, and sports & outdoor equipment. This strategy offers founders an exit path while utilizing Heroes’ resources to potentially expand these FBA businesses internationally through its team of specialized professionals.

Alessio Bruni points out, “A key challenge with ‘traditional’ Direct-to-Consumer (D2C) businesses is the uncertainty surrounding product-market fit.” He notes that venture capital firms have invested substantial funds in D2C companies over the past decade, but only a small fraction have successfully achieved product-market fit, often leading to excessive spending on customer acquisition.

He further explains that, in contrast, a $300 billion market exists, “driven by dedicated individuals who have established profitable businesses on Amazon without relinquishing equity to investors.” Many of these ventures began as side projects to supplement income but have evolved into substantial, multi-million-dollar enterprises.

“Many founders realize that managing a business exceeding $1 million in revenue on Amazon is no longer a part-time endeavor,” Bruni states. It demands considerable resources dedicated to administrative duties, tax compliance, accounting, personnel management, supply chain logistics, cash flow management, and marketing. Some founders find themselves unprepared to handle such complex operations.

This is where Heroes and similar companies step in, offering founders the opportunity to realize the value of their efforts and secure an exit.

Bruni adds, “We are attracted to these brands because they have already demonstrated product-market fit, allowing us to concentrate on growth.” He suggests that this approach reverses the conventional D2C model, starting with established demand and avoiding the need for extensive investment to achieve it.

Heroes intends to use the newly acquired funding to continue expanding its team and to facilitate its initial acquisitions.

Regarding its U.S. competitors, Riccardo Bruni observes, “Thrasio and Perch are both U.S.-based and primarily focus on the U.S. market. We are headquartered in London and concentrate on the European market.” He highlights that the European market is considerably more fragmented than the U.S. market, with each country possessing its own distinct Amazon marketplace.

“We believe this fragmentation presents a significant opportunity, requiring localized knowledge, expertise, and language proficiency.”