Gravitiq Enters E-commerce Aggregator Market

Gravitiq Secures Seed Funding for E-commerce Healthcare Brand Aggregation

A new e-commerce roll-up company, Gravitiq, based in London, has recently obtained significant seed funding. The firm focuses on acquiring and expanding Amazon marketplace brands within the consumer e-commerce healthcare sector.

Investment Details

Today, Gravitiq announced a $55 million seed investment, comprised of both equity and debt financing. The specific allocation between these two components was not disclosed by the company.

Investors participating in this round include CoVenture, Crossbeam Venture Partners, and Singh Capital Partners.

A Unique Founding Team

Gravitiq distinguishes itself from other e-commerce aggregators through its unique founding team. The company was established by a collective including medical doctors and a legal professional.

This team possesses firsthand experience in building a healthcare brand, having successfully launched their own venture in 2016.

Early Acquisitions and Strategy

Doctors Saurabh Srivastava and Adam Gunasekara, alongside Sachin Srivastava – who brings M&A expertise from his time at Latham & Watkins – completed their initial acquisition in October 2021.

CEO Saurabh Srivastava explained to TechCrunch that the idea for Gravitiq originated during pandemic-related travel restrictions. They envisioned a portfolio of online healthcare businesses leveraging their combined skills.

Gunasekara highlighted the benefits of concentrating on a single niche, citing easier scalability due to shared customer characteristics.

Sachin Srivastava emphasized that the team’s specialized knowledge fostered trust with sellers, making them more comfortable transferring ownership of their companies.

Target Acquisition Areas

Gravitiq is actively seeking companies across various healthcare segments. These include supplements, wellness products, baby care items, and first aid supplies.

To date, the company has completed six acquisitions, encompassing businesses specializing in orthotics, as well as tools for managing ADHD and anxiety.

Future Plans and Growth

The new investment will enable Gravitiq to pursue further acquisitions and broaden its portfolio of e-commerce healthcare brands.

The company also intends to expand its team, currently numbering 20 employees across the U.S., Europe, and Asia.

Gravitiq plans a measured approach to acquisitions, targeting brands with annual recurring revenue between $1 million and $10 million.

Competitive Landscape

Gravitiq joins a growing number of startups attracting venture capital to acquire Amazon marketplace businesses.

Recent funding rounds include $555 million for San Francisco-based Heyday and $1 billion for industry leader Thrasio. Perch secured a substantial $775 million investment in May.

Investor Perspective

Sakib Jamal, an investor at Crossbeam, believes it is premature to predict the ultimate structure of the e-commerce aggregator market.

However, he notes a significant need for assistance among the increasing number of sellers joining Amazon.

Jamal specifically highlighted Gravitiq’s specialization in healthcare as a key differentiator.

He emphasized their ability to navigate regulatory requirements and ensure accurate product claims, areas where Amazon may not provide extensive support.

“The combination of medical expertise and Amazon operational experience is a rare and valuable asset,” Jamal stated.

He also noted the team’s prior success in brand management and the well-defined processes they had established even before making their first acquisitions, fostering a high level of trust.