D1 Brands, which buys Amazon’s Fulfillment by Amazon (FBA) brands, announced it has locked in $123 million in Series A financing in a round led by asset management firm CoVenture and venture capital firm Crossbeam Venture Partners.
D1 grabbed additional investment from investment firm ID8 Investments in this round, which will allow the company to accelerate its growth through additional investment in new brands, product development, technology and talent. The company also hired CJ Bilangino, who came from men’s athletic apparel company Rhone, as chief financial officer.
“The FBA space is an enormous, rapidly growing market of thousands of talented operators who, until now, have not had a quality option for realizing the brand value they have created,” said Yaz Malas, co-CEO and co-founder of D1 Brands.
“With the support of CoVenture, Crossbeam and ID8, we are able to provide value to even more sellers and continue on the path to serving as the preferred partner for Amazon sellers, while also playing a major role in the overall growth and development of this space,” Malas said.
“We intimately understand the challenges these brands face operating a small business on Amazon because we’ve faced them ourselves,” said Mohammad Usman, co-CEO and co-founder of D1 Brands
Perch’s goal when acquiring and operating a brand on Amazon is first “in-place optimization,” said CEO Chris Bell. The company then focuses on globalization before moving on to selling on other eCommerce sites beyond Amazon. Perch is also investing in direct-to-consumer (D2C) channels “in a small way.” The company has also been wooed recently by brick-and-mortar retailers.
Consumer goods startup Thrasio, which acquires Amazon FBA brands, closed a round of Series C funding with a $100 million investment in April, bringing its total to $1.35 billion. The company has acquired and consolidated more than 100 brands and 15,000 products selling on Amazon and is eyeing a public listing.