Aggregator for Ecommerce Brands Raises $40M Funding

Ecommerce Brands Secures $40 Million Investment for Expansion

Ecommerce Brands is a recently established consumer brand aggregator entering a competitive market. Its strategy centers around integration with Cart.com to provide essential backend support for brands as they experience growth.

The company, based in Atlanta, officially launched in September 2021. It is led by founder and CEO Mark Bickenbach, formerly a business unit president at The Home Depot and CFO of its online platform, and board chairman Jim Jacobsen, the previous CEO of RTIC Outdoors and a co-founder of Cart.com.

Funding Details

A recent announcement detailed a $40 million investment. This comprises $10 million in equity, spearheaded by Bearing Ventures, and $30 million in debt financing.

Cart.com, a provider of comprehensive e-commerce solutions, previously secured a $98 million Series B funding round last August. This capital supports its software, services, and infrastructure designed to facilitate online scaling for businesses.

Acquisition and Growth Strategy

According to Bickenbach, Ecommerce Brands intends to acquire direct-to-consumer (DTC) brands. These brands will then be integrated onto the Cart.com platform to enhance revenue and profitability. This approach represents a shift from relying solely on marketplaces for growth.

“DTC brands often encounter limitations in scaling their operations and technology,” Bickenbach explained. “They typically operate with lower profit margins and concentrate on a single sales channel, making it challenging to allocate resources across multiple channels to cover fixed business costs. We recognize an opportunity to acquire a business, implement the necessary technology, and empower operators to focus on core business functions.”

He posits that this approach distinguishes his company from other e-commerce aggregators that primarily acquire already-successful brands from platforms like Amazon and Shopify.

The Rise of E-commerce Aggregators

E-commerce aggregators have experienced significant growth globally in recent years, attracting substantial venture capital investment. Recent examples include Merama in Latin America, which achieved unicorn status after a $60 million raise, and Nebula Brands in Beijing, securing $50 million.

Other notable companies in this space are Gravitiq, specializing in healthcare brands, and Heyday, which raised $555 million in a Series C round. Established players like Thrasio announced $1 billion in funding in October, while Perch secured a $775 million investment in May.

Future Plans

The newly acquired funding will be allocated towards acquiring businesses and transitioning their backend operations to Cart.com. Ecommerce Brands will also focus on developing its own tools to streamline growth and operations, alongside expanding its supply chain team. Bickenbach anticipates these tools will be operational by March.

To date, Ecommerce Brands has acquired five brands, collectively generating over $150 million in annual gross sales. The company primarily targets businesses that are already profitable, demonstrating positive EBITDA.