Amazon aggregator D1 Brands has its headquarters in New York City. It confirms a funding round of $123 million (Series A) which comes less than one year after the establishment of the firm. This is the latest deal in a packed arena of companies looking for opportunities amidst the rising popularity of third-party retail sellers in digital marketplaces.
Lead investors Crossbeam Venture Partners and CoVenture repose their faith in the company, along with ID8. D1 Brands is mum on its valuation and revenues, although its co-founder & co-CEO, Yaz Malas, states that the business is already profitable and forecasts $100 million in sales figures by year-end. As per reports, Thrasio, the company’s rival, has raised $2 billion till date, being valued at almost $4 billion, notching up $500 million in revenues for 2020.
Select companies like D1 purchase private labels (third-party) along with D2C (direct to consumer) entities for reselling them on digital marketplaces such as eBay and Amazon. D1 already has 20 such brands in its kitty, including its flagship Equinox, MozArt, and many others. Malas feels that after the pandemic, firms on Amazon doubled their revenues simultaneously. Hence, D1 Brands took the lead in being a leading aggregator in the space.
D1 Brands is a late entrant to a field which has grown ever since the pandemic. Reports highlight 69 entities purchasing leading brands on Amazon, and they have cumulatively raised $7 billion+ and counting from April, 2020. Jungle Scout states how third-party merchants accounted for 54%+ of net sales figures for Amazon ($386 billion) in 2020.
Thrasio is the biggest player in this space, raising $2 billion from 2018 onwards. The company is taking the public route soon with backing from Churchill Capital V. Perch got $775 million in May as well. Suma Brands got $150 million, while Unybrands confirmed $300 million in funding as well. The company will use most of these funds for expanding into global markets. It will be purchasing more companies, and scaling up its recruitment drive alongside.