Benitago Group, a startup wanting to construct an enormous portfolio of Amazon brands, is asserting that it has raised $55 million in new funding — most of it in the type of credit score strains to fund acquisitions, plus an equity funding.
“We need to take these brands and progress them and run them much more effectively,” mentioned co-founder Santiago Nestares.
Other startups have additionally raised huge rounds to roll up Amazon FBA (Fulfillment by Amazon) companies, however Nestares informed me that Benitago is totally different as a result of it’s not simply centered on “monetary arbitrage.” Instead, it has created an in depth, repeatable blueprint to proceed rising these enterprise.
Nestares and his co-founder Benedict Dohmen (they every gave the corporate just a few syllables for its title) began Benitago whereas college students at Dartmouth, with the again ache model Supportiback. The firm has subsequently expanded into classes like magnificence, maternity and diet, however Nestares mentioned they funded that progress with income, with out elevating a lot outdoors capital prior to now.
As a consequence, group members could not have been specialists in, say, orthopedics, however they’ve succeeded as a result of they’re “hyper-focused” on how brands can grow on Amazon, changing into what Nestares described as “Amazon natives.”
The course of often begins with a complete take a look at the aggressive panorama and what prospects are saying in their opinions. Then, Nestares mentioned, “We design every part round Amazon, from the characteristic choice to the best way we create the colours in the packaging [to] the best way the product matches in an Amazon field.”
The firm mentioned that when it acquires brands, the method solely takes just a few weeks, and that the earlier homeowners retain a monetary stake in the model’s continued progress.
“This isn’t a passive monetary play, it’s an an affect progress play,” Nestares added.
Amazon is unlikely to lose its e-commerce dominance anytime quickly, however Nestares acknowledged that constructing Benitago’s enterprise on a single platform is its “largest threat.” At the identical time, he prompt that the startup could be very totally different from, say, firms who is likely to be threatened any time Google modifications its search algorithm.
“I feel Amazon is totally different, as a result of Amazon has the identical objective as you: To promote to the shopper as a lot as they will,” he mentioned.
Benitago at the moment operates 5 brands with greater than 100 whole merchandise. With the brand new funding, that quantity may improve dramatically — Nestares mentioned there are 12 new brands in growth, whereas he’s additionally hoping to purchase one other 25 or extra brands by the tip of the yr.
CoVenture led the equity funding and offered one of many credit score strains.