Thrasio, an acquirer of private label businesses on Amazon.com Inc., has raised $260 million in a series C funding round led by private equity firm Advent International.
The deal values the company at $1 billion, according to a joint statement from the company and Advent. Thrasio, among the top 25 sellers on Amazon, has more than $300 million in pro forma revenue on a trailing 12 month basis, according to the statement.
While the conronavirus pandemic has decimated in-store shopping, it has accelerated the migration to online retail. Internet sales are expected to increase 43% by 2022, while brick-and-mortar retail falls 4%, analysts at Citigroup Inc. wrote in a note last week citing eMarketer forecasts. Amazon sales will comprise almost 7% of total U.S. retail sales by 2022, they said.
Almost 80% of the businesses owned by Thrasio have seen positive growth since the pandemic begun, said Joshua Silberstein, the company’s co-founder and co-chief executive officer. Thrasio, started in 2018, has integrated almost 60 businesses and sells more than 6,000 products.
The Thrasio deal is the first growth investment from Advent’s $2 billion technology fund, which is co-investing with its flagship fund.
“This is an uncertain time, there’s been a slowdown in the domestic M&A market and we’re seeing a different mix of opportunities,” said David Mussafer, managing partner at Advent. “We’ve had a lot of experience with consumer products companies in more traditional buyout deals, but I’m excited that we’re building something really special with Thrasio.”
Thrasio buys brands for everyday products for a typical purchase price of more than $1 million from small business owners. It then operates the brand with upgraded marketing, product development and supply chain management.