Singapore-based Amazon brand acquirer Rainforest has raised $20 million in an oversubscribed pre-Series A funding round led by Monk’s Hill Ventures.
New investors January Capital, Crossbeam Venture Partners, Amasia, Lo & Behold Group and return backers Nordstar Partners and Insignia Venture Partners – joined the round. With this round, the total funding raised by the startup is over $50 million.
Proceeds from the round will be used to drive Rainforest’s aggressive growth strategy, including expanding its portfolio of e-commerce brands in the home goods, mother & kids, personal care and pet categories, and growing its leadership team through key hires.
By the end of 2021, the company plans to grow its current portfolio of e-commerce brands by three times. Rainforest has successfully acquired six Amazon brands in Asia so far, including a China-based brand for $3.6 million as part of its expansion into the country.
Furthermore, Rainforest has made two key senior hires, Yev Ivanko and Christine Ng, to drive the business forward in acquisitions, branding and marketing, product development, supply chain, operations, and strategy.
Ivanko serves as vice president of acquisitions and prior to Rainforest, he was the co-founder and CEO of NimbleSeller. Ng will take on the role of vice president, brands and she has held several executive roles at Shopbop, Luxola.com and ClassPass.
Rainforest last raised $6.55 million equity and $30 million debt in its seed round in May to acquire e-commerce brands from Asian brand owners. Accial Capital serves as the debt provider.
The Amazon brand acquisition space has been seeing big-ticket funding rounds. Just last week, UK-based Heroes raised $200 million to buy up more Amazon merchants while Berlin Brands Group, now valued at more than $1 billion, raised $700 million in the same week.
In June, India’s Mensa Brands had raised $50 million in a Series A funding round led by Accel Partners, Falcon Edge Capital, and Norwest Venture Partners.
In Southeast Asia, Singapore’s Una Brands raised $40 million in a 500 Startups-backed seed round to acquire brands across top e-commerce platforms such as Amazon, Lazada, and Shopee.
According to Marketplace Pulse, nearly $1 billion in fresh capital (a mix of equity and debt) was committed in 2020 to firms — Thrasio, Heyday, SellerX, Boosted Commerce, Razor and more — looking to acquire Amazon sellers and brands.