Thrasio Secures $100M Funding & Appoints New CFO

Thrasio Secures Additional Funding and Appoints New CFO

Thrasio, a prominent company in the consolidation and scaling of Amazon Marketplace businesses, has recently obtained further investment and announced a significant executive appointment to facilitate its own expansion.

Having already acquired and consolidated over 100 brands, encompassing 15,000 products sold on Amazon, the company has secured $100 million in new funding.

Series C Extension and Financial Performance

This $100 million represents an extension to Thrasio’s Series C funding round, which previously saw a $750 million investment approximately six weeks ago.

A prior closing of $260 million occurred last July, bringing the total raised to $1.85 billion in equity and debt.

Co-founder and co-CEO Josh Silberstein stated that the company’s valuation has increased by 50% in the last month.

Thrasio reported a profit of $100 million on revenues of $500 million last year.

Investor Details and Potential IPO

The latest funding comes from existing investors who sought a larger allocation in the previous financing round.

Key backers include Oaktree, Advent, Harlan Capital, Peak6, Western Technology Investment, and Upper 90, led by Jason Finger.

The additional investment suggests the company is preparing for future strategic moves, potentially including a public listing through a SPAC or a traditional IPO.

Silberstein indicated that discussions regarding valuation are ongoing and subject to legal considerations.

Executive Appointment: Bill Wafford as CFO

Bill Wafford, a retail veteran, has been appointed as Thrasio’s new CFO.

He previously served as CFO at JC Penney and Vitamin Shoppe, with prior finance roles at Walgreens and Target.

Wafford will replace Joe Falcao, who will assume the role of SVP, Finance and Treasurer, focusing on scaling the company’s treasury, tax, and international finance operations.

Strategic Alignment with Retail Expertise

Wafford’s experience in brick-and-mortar retail, particularly his work with smaller brands, aligns with Thrasio’s online business model.

Thrasio’s portfolio includes diverse products, ranging from therapeutic socks to pet odor removers and high-end kitchen goods.

Wafford expressed enthusiasm for Thrasio’s growth trajectory and team-oriented culture, highlighting its adaptability and experimentation.

Amazon Marketplace and Thrasio’s Business Model

There are approximately 5 million third-party sellers on Amazon, with over 1 million joining the platform in 2020 alone.

Thrasio’s model addresses the challenges faced by these sellers when scaling successful products.

The company estimates that around 50,000 businesses on Amazon utilizing Fulfillment by Amazon (FBA) generate $1 million or more in annual revenue.

Challenges of Scaling and Thrasio’s Solution

Silberstein explained that businesses exceeding $1 million in revenue often struggle with growth and management due to challenges in SEO, marketing, and supply chain management.

This leads to decreasing margins and difficulties in maintaining returns.

Thrasio aims to solve these problems by acquiring multiple businesses and building a scalable infrastructure for supply chain, marketing, and other essential functions.

Data Analytics and Expansion Beyond Amazon

Thrasio has developed a robust analytics engine to identify promising companies, optimize their sales, and explore opportunities beyond the Amazon ecosystem.

This includes expanding into other marketplaces, sales channels, and direct-to-consumer (D2C) sales.

Competitive Landscape and Roll-Up Strategies

Inspired by Thrasio’s success, numerous other companies have launched similar roll-up strategies.

Branded, Berlin Brands Group, SellerX, Heyday, Heroes, and Perch have collectively raised over $1 billion to acquire small, promising third-party merchants.

The Future of Amazon Marketplace Consolidation

As Amazon continues to grow, the need to improve product discoverability and connect consumers with quality products is becoming increasingly important.

The success of these roll-up companies will depend on their ability to deliver on their promises to both the brands they acquire and their investors.

Correction: The article has been updated to reflect the accurate number of acquired companies (over 100) and the company’s profit ($100 million).