Razor Group acquires US Amazon aggregator Perch and announces Series D financing round
- Razor Group has acquired Perch, the leading Amazon aggregator in the US, solidifying its position as the global leader in the aggregation of online marketplace consumer brands.
- This acquisition paves the way for Razor to reach over $1 billion in topline revenue in the medium-term and adds significant scale to its operations.
- The combined entity will manage an assortment of more than 40,000 products across various online channels in the US, UK, EU, and Latin America.
- The acquisition is part of Razor's broader consolidation strategy in the e-commerce aggregator space, following successful acquisitions of Factory14, Valoreo and The Stryze Group.
- Presight Capital is leading Razor's Series D financing round, demonstrating strong confidence in Razor's long-term vision and further growth potential.
- The additional funding will be used to further invest in Razor's technology infrastructure including leveraging advancements in artificial intelligence (AI) and large language models (LLMs) to achieve complete automation of Razor's consumer-to-manufacturer (C2M) retail operations.
BERLIN and BOSTON, March 5, 2024 /PRNewswire/ -- Razor Group ("Razor") has acquired Perch, the leading Amazon aggregator in the US, solidifying its position as the global leader in the aggregation of online marketplace consumer brands and creating the #1 player in the industry.
The acquisition is part of Razor's broader consolidation strategy, underscoring its capability to act as the key consolidator within the global e-commerce aggregator ecosystem, following successful acquisitions of Factory14, Valoreo and The Stryze Group.
It also paves the way for Razor to reach over $1 billion in revenue in the medium-term, add significant scale to its operations and create a highly profitable global technology and e-commerce powerhouse. The new combined entity will manage an assortment of more than 40,000 products across key brands selling on 30+ marketplace and direct-to-consumer channels in 10+ countries across North America, United Kingdom, Europe, and Latin America.
In conjunction with this acquisition, Razor is also announcing a Series D financing round, led by Presight Capital. This new round, against a challenging macroeconomic backdrop, underscores the strong confidence investors have in Razor Group's long-term vision and its potential for further growth.
The additional funding will be used to further invest in Razor's technology infrastructure throughout the entire supply chain. Moreover, recent developments in artificial intelligence (AI) and the emergence of large language models (LLMs) presents a valuable opportunity to achieve complete automation of Razor's consumer-to-manufacturer (C2M) retail operations, optimising processes, improving efficiency, and driving faster product innovation cycles and delivery.
"The e-commerce aggregator space will undergo continued consolidation in the medium-term, driven by the current macroeconomic environment. The acquisition of Perch is a highly value-accretive and transformative transaction on Razor's path to becoming a global technology-driven e-commerce powerhouse. Presight is delighted to lead this funding round and continue to support Razor on its future growth path. With this sizable investment, we are also doubling down on Razor's technology stack and capabilities, led by its CTO Shrestha Chowdhury, to power the global marketplace ecosystem," said Christan Angermeyer and Fabian Hansen, Co-Founders and General Partners of Presight Capital.
Tushar Ahluwalia, Co-Founder and CEO at Razor Group, commented: "We are excited to partner with Perch, the leading US player in our space. The transaction further strengthens our market leadership, solidifying Razor Group as the #1 player globally. In contrast to our peers, our focus has been to build the Western response to Chinese vertical C2M models like Temu and Shein, rather than an internet version of P&G. Therefore, our secret sauce has been to invest in sophisticated technology automation to ensure deep supply-chain integration and hyper-fast product innovation cycles right from the start, a prerequisite to making the model work and seeing us develop the industry's leading automation stack. With the ongoing advancements in AI and LLMs, that work continues."
Chris Bell, Founder and CEO of Perch, added: "Over the past 18 months, Perch has transformed its business through our proprietary technology, machine learning-based decision engine, and leading supply chain capabilities, creating one of the first large-scale, cash flow positive players in our space. This combination with Razor, which will combine the best technology and people across two top players in our industry, creates a clear global platform for the next stage of consolidation and growth."
About Razor Group
Razor Group GmbH ("Razor") was founded by e-commerce experts and serial founders Tushar Ahluwalia, Christoph Gamon, Shrestha Chowdhury and Dr. Oliver Dlugosch. The Berlin-based company acquires and operates profitable Amazon FBA businesses and other online marketplace sellers which have consistently demonstrated superior product quality, outstanding customer satisfaction and sharp business acumen. Razor pairs significant growth capital with extensive e-commerce and technology expertise, thereby ensuring that the acquired businesses reach the next stage in their development. Razor defines itself as a technology-driven e-commerce business to push world-class consumer products in relevant categories into all leading marketplaces globally.
About Perch
Perch is a technology-driven commerce company that acquires and operates Amazon FBA and other D2C brands at scale. With roughly 100 brands and 5,000 products, Perch offers a diversified portfolio of leading consumer goods across multiple popular categories such as Home & Living, Sports, Health and Toys. Through its proprietary technology platform, strong focus on the US Amazon sales channel, and leading supply chain capabilities, Perch has quickly become the established leader within the US Amazon aggregator segment. Perch was founded by Chris Bell in 2019 in Boston, USA.
About Presight Capital
Presight Capital is a leading venture capital fund with >$600m assets under management that backs ambitious founders across multiple sectors globally including Consumer, Fintech, Healthcare, Robotics etc. Presight was launched in 2019 by serial entrepreneur Christian Angermayer and seasoned investor Fabian Hansen, as the flagship venture capital investment arm of Apeiron Investment Group, the family office of Christian Angermayer. Since its inception, Presight has invested in 70+ companies and completed 8+ portfolio public listings.
Contact:
Ben Li
VP Corporate Finance
[email protected]
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SOURCE Razor Group
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