FBA (Fulfillment by Amazon) aggregator Elevate Brands, which acquires and operates Amazon third-party businesses, has raised an additional $12.5 million in bridge funding from its existing group of fintech and ecommerce business investors. The new capital brings the company’s total funding to more than $67.5 million in 2021.
This most recent investment enabled Elevate to acquire its 20th Amazon Marketplace brand earlier in April 2020, and will fuel its plan of buying three to four new sellers every month to reach a total of at least 100 brands by the end of 2022.
Elevate is part of a growing cohort of companies rapidly collecting successful Amazon third-party sellers, primarily those that use FBA.
“There have been a plethora of Amazon Marketplace sellers looking to exit in the last three months, a significant step up from last year,” said Ryan Gnesin, CEO of Elevate Brands in a statement. “As Amazon FBA sellers ourselves, we can truly relate with these business owners and ensure an efficient and pleasant acquisition process. We have a strong playbook for growing these brands post-acquisition and this bridge funding will enable us to maintain our momentum.”
Elevate said it has seen nearly 100% average post-acquisition growth across its portfolio and expects to hit more than $150 million in revenue by year end. The company also recently opened a second headquarters in the growing tech hub of Austin, Texas, joining its existing headquarters in New York City.