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~ Ronan Bardet ~

COLUMN

THRASIO, THE AMAZON BRANDS AGGREGATOR,
RAISES $1 BILLION IN FRESH FUNDING AT A
VALUATION OF UP TO $10B.

I’m guessing most of you have seen this headline.
A new business model that was born just three years ago is specific
already represented by companies worth up to $10 billion. products in a
Not to mention the great number of recently founded niche sector.
companies who are copying the aggregator idea. • Fulfilled by Amazon (FBA): it’s not only that 82% of the top
Amazon sellers use FBA. It is also about not having to
The UK, Germany, Spain…Amazon aggregators are here and care about packaging, shipping and returns.
remind me quite a lot of the rush back in 2009 when many
companies were trying to copy the Groupon business model. But Thrasio is not the only player here. Many other
companies completed impressive investment rounds with very
Different times and different needs young projects. Some examples are Heroes, which raised $200
I have to admit that I am curious about this model. It is too million in August; Olsam with $165 million; Suma Brands
soon to make heavy statements or to predict its future. But with $150 million; Elevate Brands who raised $250 million
it is surprising how, being something so new and lacking in last July; Perch with an impressive round of $775 million; and
proof of validity, it allows really young projects to close huge Factory 14 with $200 million.
investment rounds.
Some other names in the game are Heyday, The Razor Group,
At some point, this model is kind of competing with Branded, SellerX, Berlin Brands Group, Benitado, Valoreo,
e-commerce accelerators. The aggregators buy brands to make Rainforest, and Una Brands.
them grow, and accelerators help them to sell better. Two
different ways to get the same result: a better performance. This business model had a great start, but it still has a long
This model is already evolving. Some aggregators have shown way to go to prove its sustainability. Making companies grow
their interest in D2C brands opening new opportunities and is hard work, and as new competitors arrive to the game, the
expanding the current focus set on Amazon Brands. harder it will get.

What makes a company appealing to an aggregator? How will they face the future?
There are many aspects to take into account while scouting It is definitely something I’ll be closely following as I am
for new brands to add to an aggregator portfolio. extremely curious about how they will manage the challenges
of increasing portfolios, consumer trends, changing markets
• Registered brands: easier to grow a type of production that and how they will approach different markets.
you can control.
• Profitability: most aggregators seek companies with an Aggregators, time to play! ••
annual net profit of at least $200k with margins from
15% above. RONAN BARDET
• Number of SKUs: the less, the better. Founder of EGI Group & Club eCommerce; I have been named one of the Top
• Percentage of sales placed through Amazon: there isn’t a magic 10 Spanish eCommerce Influencers with more than 17 years of experience in
number here, and you can find aggregators seeking 30% the Digital Commerce industry.
sales through Amazon and others that require at least
75%. I am an expert in SaaS Retail Tech & eCommerce Tech Startup acceleration
• Timeless demand: they don’t decide on trends; they look for (sales + marketing + capital). My passion for the industry has led me to
long-lasting items. launch and grow many Digital Commerce tech startups in Spain and create a
• Customer loyalty: repeating customers are an indicator of a specific acceleration program for them. As an eCommerce expert, I have also
good job done so far and of product quality. mentored many Spanish DNVBs / D2C Brands.
• Niche: some aggregators are niche-oriented; they seek

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