Razor Group is a Berlin-based e-commerce aggregator that buys and consolidates retailers selling on marketplaces and emphasizes technology and supply-chain agility. The company has acquired U.S.-based Perch and previously bought smaller aggregators such as Stryze and Factory 14; Perch had acquired Web Deals Direct. Management says it plans to pursue a consumer-to-manufacturing (C2M) approach and maintain a founder-led operational focus. The combined business claims it is on track for $1 billion in revenues within the next four to eight quarters and is bottom-line profitable. The deal creates a combined enterprise value of $1.7 billion and the company carries roughly $400 million of debt, which the company says is not due for at least four years following a restructuring included in the transaction. The move is presented as part of a wider consolidation in the e-commerce aggregator sector following turmoil among peers. Razor is a Berlin-based aggregator of e-commerce consumer goods businesses that acquires profitable Amazon FBA and other online marketplace sellers. Co-founded by Tushar Ahluwalia, Christoph Gamon, Shrestha Chowdhury and Dr. Oliver Dlugosch, the company combines growth capital with e-commerce operational expertise to scale acquired brands. Razor says it has generated close to $400M in pro-forma LTM net revenues over the past 12 months. The company expanded its presence in Latin America through the acquisition of Valoreo, an e-commerce player led by Stefan Florea and Martin Florea. Razor intends to use new funds to execute selected consolidation opportunities, support organic growth initiatives including brand extensions and new product development, and to expand its international presence. Investors in the cited financing include L Catterton, 468 Capital and Presight Capital. Razor Group is a Berlin-based fulfillment-by-Amazon (FBA) aggregator that acquires, operates, and scales Amazon merchant brands. The company has confirmed the acquisition of 25 merchants so far this year and the purchase of Luxembourg-based competitor factory 14. Razor Group secured an additional $400 million in funding by increasing an existing debt facility, which now totals $800 million provided by BlackRock and Victory Park Capital. Since August 2020 the group has seen approximately $960 million in investment across nine rounds. Management said that with competitive pressure for FBA assets relaxing, now is a good time to look for high-quality FBA merchants and signaled potential for further M&A activity. The company indicated it will provide further information in early August. Razor Group operates a tech-driven platform that acquires and integrates third-party merchants selling on marketplaces such as Amazon, aiming to consolidate sourcing, marketing and logistics. The company says its platform has analyzed roughly 1.5 million Amazon merchants and sourced about 80,000 potential targets, and to date Razor has acquired 80 merchants covering 150+ brands. Razor reports group EBITDA profitability and expects to post about $400 million in revenue for the year ending in December, with a trajectory to pass $1 billion in sales in 2022. About 12% of current revenues are already non-Amazon, and the company plans to grow that to over 20% within the next three quarters while diversifying channels. Razor has grown rapidly since launching 14 months ago and now operates with roughly 300 employees across Berlin, Delhi, Austin, London, Bangalore and Shenzhen. Razor Group builds a technology-driven platform to buy promising third-party Amazon sellers and scale them into larger, multichannel businesses. The company uses algorithms and a machine-scale due-diligence system that evaluates about 1 million companies weekly and sources 99% of its acquisitions funnel directly. Razor targets businesses typically generating $1 million to $15 million in annual revenue and says technology runs through both acquisition sourcing and post-acquisition growth. Founded in August 2020, the team has grown to 107 employees across four offices and has amassed 30 brands to date. From those brands Razor is on track to cross $120 million (€100 million) in sales, and the company projects it could reach $480 million (€400 million) in sales within 12–15 months if its new acquisition debt is deployed. Razor positions itself against other FBA roll-up players by emphasizing faster identification and better tooling to grow acquired brands.

Total raised

$1.1B

Funding rounds

8

Latest round

Equity

Latest activity

Mar 2024