L Catterton Leads New Investment Round in Razor Group

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Dec 22, 2022, 16:45 ET

$70 Million Financing Round Led by L Catterton to Support Razor's Leadership as a Global E-Commerce Operator

Razor Group Acquires VALOREO to Advance Global Growth Strategy

GREENWICH, Conn. and BERLIN, Dec. 22, 2022 /PRNewswire/ -- L Catterton, a market-leading consumer-focused investment firm, today announced that its Latin America fund has led a $70 million funding round for Razor Group ("Razor"), a leading global aggregator of e-commerce consumer goods businesses, advancing the firm's long-term conviction in the e-commerce aggregator category. Other investors participating in the investment round include 468 Capital and Presight Capital.

Founded in Berlin in 2020, Razor's mission is to build a next generation global consumer goods conglomerate by acquiring profitable e-commerce businesses and online merchants and providing them with the scale, expertise, and resources to expand their reach to customers worldwide. With a focus on backing businesses with the highest product quality and customer satisfaction, Razor intends to use the funding from this investment round to execute selected consolidation opportunities, to support organic growth initiatives focused on brand extensions and new product development, and to expand its international presence.

"We are pleased to have received the validation for our strategy from a consumer investor of L Catterton's caliber," said Tushar Ahluwalia, Co-Founder and CEO at Razor Group. "Leveraging our e-commerce and operational expertise to help our brands reach their full potential is a core element of our strategy. This financing round not only provides us with additional capital to support our roll-up engine, but our impressive line-up of new and existing investors gives us an unmatched understanding of global consumers and exceptional operating expertise to help our brands grow and thrive, advancing our position as one of the leading e-commerce aggregator platforms. We're confident that these partnerships will drive significant value-creation opportunities for Razor as we continue to build a global powerhouse."

"At L Catterton, we have a deep understanding of the e-commerce ecosystem and continue to believe that this space will see significant long-term growth across different regions, categories, and marketplaces, with the opportunity for multiple strategies to succeed," said Ramiro Lauzan, a Partner at L Catterton. "In only two years, Razor has developed remarkable scale and operating capabilities, maintaining robust growth rates and healthy profitability levels in a challenging macro context – thereby emerging as one of the leading global e-commerce players. We believe Razor will be at the forefront of the sector's upcoming global consolidation, and we are excited to support them on that journey."

As an immediate first step of this strategy, Razor also announced that it has acquired VALOREO, the leading e-commerce player in Latin America backed by prominent institutional investors including L Catterton, Kaszek Ventures, and Presight Capital, giving Razor a significant presence in the region. Over the last 12 months, Razor Group has generated close to $400 million in Pro-Forma LTM Net Revenues.

"The acquisition of VALOREO immediately allows us to capitalize on the significant e-commerce opportunity and accelerates our global growth and consolidation strategy," added Ahluwalia. "Latin America is the fastest growing e-commerce market in the world, with strong secular consumer trends that will continue to drive long-term growth. We're pleased to welcome VALOREO, its brands as well as its great team to Razor Group as we build on the strong foundation it has established in Mexico, Brazil, and Colombia."

Stefan Florea and Martin Florea, Co-Founders and Co-CEOs of VALOREO, said, "Since we started VALOREO, our focus has always been connecting consumers to high quality products at affordable prices. By joining forces with Razor Group, we will accelerate our ability to achieve that mission. We are confident that this transaction is the best path forward for VALOREO and all our stakeholders. We appreciate the dedication of our amazing team and the contributions of everyone who has supported us in reaching this important milestone."

L Catterton has significant experience investing in the e-commerce aggregator space across the globe. Current and former investments include SellerX, Dragonfly, and Nebula.

About Razor Group
The Razor Group GmbH ("Razor") was founded by e-commerce experts and serial founders Tushar Ahluwalia, Christoph Gamon, Shrestha Chowdhury & Dr. Oliver Dlugosch. The Berlin-based company acquires profitable Amazon FBA businesses and other online marketplaces sellers which have consistently demonstrated superior product quality, outstanding customer satisfaction and sharp business acumen. Razor pairs significant growth capital with extensive e-commerce expertise, thereby ensuring that the acquired businesses reach the next stage in their development. Razor defines itself as consumer goods holding with a clear strategic focus on specific product categories, long-term value creation and world-class customer satisfaction.

For more information: www.razor-group.com

About L Catterton
L Catterton is a market-leading consumer-focused investment firm, managing more than $30 billion of capital across three multi-product platforms: private equity, credit, and real estate. Leveraging deep category insight, operational excellence, and a broad network of strategic relationships, L Catterton's team of more than 200 investment and operating professionals across 17 offices partners with management teams to drive differentiated value creation across its portfolio. Founded in 1989, the firm has made over 250 investments in some of the world's most iconic consumer brands. For more information about L Catterton, please visit lcatterton.com.

About VALOREO
VALOREO is Latin America's next-gen consumer holding company. Founded in 2020 by Martin & Stefan Florea, Alexander Grüll, Cedrik Hoffmann, and Miguel Oehling, the team combines expertise in Private Equity, Investment Banking, e-commerce, Startups, and Supply Chain Management.

For more information, visit https://www.valoreo.com/

Media Contact:

Julie Hamilton
Managing Director, Firm Communications
[email protected]
203.742.5185

SOURCE L Catterton