olsam Raises $165M to Acquire & Scale Amazon Marketplace Sellers

New Funding for Amazon Marketplace Roll-Up Startup Olsam

Following the announcement of a $200 million funding round for Heroes earlier today, another London-based startup focused on acquiring and expanding third-party Amazon Marketplace sellers has secured significant investment. Olsam, a roll-up venture specializing in both consumer and B2B merchants utilizing Amazon’s Fulfillment by Amazon (FBA) program, has closed a $165 million funding round.

Funding Details and Investors

This funding comprises a blend of equity and debt, earmarked for accelerating Olsam’s mergers and acquisitions (M&A) strategy. Additional funds will be allocated to further development of its technology platform and expansion of its team.

Apeiron Investment Group, founded by German entrepreneur Christian Angermayer, spearheaded the Series A equity round. Elevat3 Capital, an Angermayer firm with a strategic alliance with Founders Fund and Peter Thiel, also participated. North Wall Capital provided the debt financing. This represents the company’s first major funding announcement since its launch in October 2020.

Similarities to Heroes and Founding Team Expertise

Olsam shares key similarities with Heroes, including its origin as a London-based Amazon roll-up startup receiving funding today. Both companies were established by brothers possessing relevant experience in the marketplace consolidation sector.

Sam Horbye previously held positions at Amazon, where he was instrumental in developing and managing the company’s Business Marketplace in the UK. Co-founder Ollie Horbye brings extensive experience in strategic consulting and financial services.

Leveraging Prior Marketplace Experience

The Horbye brothers previously built and sold marketplace businesses, believing their combined experience provides Olsam with a competitive advantage. This includes fostering merchant relationships, identifying high-quality products, understanding merchant challenges, and navigating the Amazon ecosystem.

Expanding into the B2B Marketplace

Olsam is adopting a diversified approach to target companies. While focusing on typical consumer categories like home & garden, sporting goods, baby products, and beauty, it is also strategically expanding into Amazon’s B2B portal – a platform Sam Horbye helped create during his time at Amazon.

The Growing B2B Opportunity

The B2B marketplace encompasses items such as office furniture, electronics, automotive parts, and kitchenware, essentially any product potentially sold on the consumer marketplace. Business customers often benefit from bulk discounts, tax advantages, and a product selection tailored to their operational needs.

Currently, B2B represents one of the fastest-growing segments within Amazon’s Marketplace, yet remains relatively underappreciated. Ollie Horbye noted, “It’s flying under the radar.” Sam Horbye added, “The B2B opportunity is very exciting, with a growing number of merchants selling to B2B customers.”

Market Size and Consolidation Trends

Estimates of the number of merchants on Amazon’s Marketplace vary, ranging from 6 million to nearly 10 million. Collectively, these merchants generated $300 billion in gross merchandise value last year, with a projected annual growth rate of 50%. Amazon reports that overall online B2B sales are 2.3 times larger than B2C sales.

This substantial opportunity, coupled with the benefits of consolidation – including economies of scale in supply chains, marketing, and analytics – is driving significant investment. Olsam cites Marketplace Pulse estimates indicating $7 billion has been spent on acquiring these businesses. They estimate over 3,000 UK-based businesses generate more than $1 million in annual sales on Amazon.

Competitive Landscape

Numerous other roll-up startups are actively pursuing this opportunity, including Suma Brands ($150 million), Elevate Brands ($250 million), Perch ($775 million), factory14 ($200 million), Thrasio, Heyday, The Razor Group, Branded, SellerX, Berlin Brands Group (X2), Benitago, Valoreo, Rainforest, and Una Brands.

While multiple players may find success, the landscape is becoming increasingly complex. Organizational expertise, M&A capabilities, and marketplace knowledge are crucial, as the success of these ventures hinges on acquiring the right businesses and effectively executing their strategies.

Investor Confidence in the Olsam Team

“The senior team behind Olsam is what makes this business truly unique,” stated Angermayer. “Their combined experience in building and selling brands within the market, coupled with their prior work at Amazon, provides an exceptional understanding of this space.”