With funding for Amazon aggregators over the past year and a half stretching well into the billions, D1 Brands, a company that acquires Amazon-native sellers, has raised $123 million in Series A financing led by CoVenture and Crossbeam Venture Partners. ID8 Investments also contributed, according to a Thursday press release.
The company said it would use the funding to acquire more brands, develop products, enhance its technology and hire employees.
D1 Brands has hired CJ Bilangino to serve as its chief financial officer. Prior to joining D1 Brands, Bilangino served as the CFO for other consumer product companies, including most recently Rhone, a men's athletic brand.
Investors are continuing to throw millions at Amazon aggregators. Research from Marketplace Pulse found that companies that acquire Amazon third-party sellers raised more than $7 billion since April 2020.
Now, D1 Brands stands among other Amazon aggregators that have recently raised millions to catalyze their portfolio brands' growth. In May, Perch, another third-party seller aggregator, raised $775 million to grow its team, improve its platform and acquire more brands. That same month, Heyday, another platform that acquires online brands, raised $70 million in Series B equity financing to build up its digital brands. Boosted Commerce, whose chairman is the founder of Charming Charlie, aims to bring hundreds of brands into its portfolio eventually.
In its announcement, D1 Brands said it has a 100% closing rate on letters of intent sent to third-party sellers and noted that it closes its deals within 27 days on average. The company currently has more than 85 Amazon-native team members, per the press release.
"We intimately understand the challenges these brands face operating a small business on Amazon because we've faced them ourselves," Mohammad Usman, co-CEO and co-founder of D1 Brands, said in a statement. "We've learned from experience in the space, both through successes and mistakes, and have taken these learnings to become better and more empathetic partners to sellers. We believe in fostering the entrepreneurship of the Amazon space and look forward to serving as a driving force of the overall growth to come."