Thrasio, the largest of the aggregators buying up Amazon-native brands, has raised over $1 billion in Series D funding, the company said today. The round reflects a vote of confidence in Thrasio on the part of its investors following the abrupt departure of its CFO and audit complications, which delayed its planned IPO. Thrasio also raised a $650 million debt round in September.
The number of Amazon aggregators has exploded in recent years. There are now roughly 70 companies buying up Amazon sellers, and collectively they’ve raised $10 billion. (Read Fast Company’s recent feature on the trend here.)
Thrasio, one of the first aggregators, is also the largest. The Boston-based company owns more than 200 brands and is on track to generate over $1 billion in revenue this year, making it one of the fastest-growing unicorns on record. This past April, when the company raised $100 million, it was valued at $3.7 billion.
Even with such growth, Thrasio’s portfolio of companies accounts for a relatively small piece of Amazon’s overall third-party marketplace, which generates an estimated $300 billion in annual sales.
“There’s a lot of room to grow on Amazon in the U.S.,” says Billy Libby, managing partner at venture firm Upper90, an early Thrasio investor. “COVID made what was going to happen over the next decade happen in two years. Thrasio was right place, right time.”
Thrasio’s model revolves around buying up profitable Amazon sellers with good reviews and compelling growth prospects. The company then optimizes acquired sellers’ listings by improving their product images, Amazon search rankings, and more. It also has to juggle logistics for hundreds of products—no small feat, especially given today’s supply chain challenges.
“People who came into this market thinking they could copy [our model] are discovering just how hard it is,” Thrasio cofounder Josh Silberstein, who stepped down from his role as co-CEO in September, told Fast Company this past summer.