A second startup from London, Heroes, has announced significant funding. This follows the announcement of a $200m raise to buy and scale third-party Amazon Marketplace sellers. Olsam, a roll-up play that is buying up both consumer and B2B merchants selling on Amazon by way of Amazon’s FBA fulfillment program, has closed $165 million — a combination of equity and debt that it will be using to fuel its M&A strategy, as well as continue building out its tech platform and to hire more talent.
Apeiron Investment Group — an investment firm started by German entrepreneur Christian Angermayer — led the Series A equity round, with Elevat3 Capital (another Angermayer firm that has a strategic partnership with Founders Fund and Peter Thiel) also participating. North Wall Capital was behind the debt portion of the deal. Olsam has not disclosed the total amount of the deal, but only the equity portion. The valuation is not also being revealed.
Olsam is an Amazon-rolled up startup from London, which happens to announce a fundraise today. This isn’t the only thing Olsam shares with Heroes. Olsam was also started by two brothers, just like Heroes.
Sam Horbye spent many years at Amazon before joining as a manager and builder of its Business Marketplace. This is the B2B version for the customer Marketplace. Ollie Horbye, the co-founder of Amazon’s Business Marketplace was a veteran in financial and strategic services and consulting.
They had both built and sold other marketplace businesses and believe this gives Olsam, a combination of Ollie and Sam, a head start in building relationships and quality products.
Olsam also takes a different approach to targeting companies. It focuses not only on consumers but also merchants who sell to businesses. “It is flying under the radar.” Ollie stated.
Sam said, “The B2B market is extremely exciting.” A growing number of merchants sell office supplies and other random items to B2B customers.
There are many estimates of how many sellers there are on Amazon’s Marketplace worldwide. These range from six million to almost 10 million. These merchants collectively generated $300 million in gross merchandise value (gross merchandise sales), which is growing at 50% per year.
Consolidating sellers is a big business to help achieve greater economies of scale in supply chains, analytics and marketing tools. Olsam estimates $7 billion cumulatively has been spent on these acquisitions, but there’s more: Olsam estimates there are approximately 3,000 UK businesses that make more than $1,000,000 in Amazon-related sales.
To be precise, Heroes is not the only roll-up startup that’s interested in this opportunity. Others have raised hundreds of millions in total this year, including Suma Brands (150 million), Elevate Brands (250 million), Perch (200 million), and factory14 (200 million).
“The senior team behind Olsam is what makes this business truly unique,” said Angermayer in a statement. Their knowledge of the space, having all worked with Amazon’s marketplace team and been successful building their brands in this market is extraordinary.
Publiated at Tue 31 August 2021 23.14:23 +0000