Chinese Amazon aggregator Nebula Brands raises $50 million led by L Catterton - Gadgets Price - Gadgets Price
Chinese Amazon aggregator Nebula Brands raises $50 million led by L Catterton - Gadgets Price
Chinese Amazon aggregator Nebula Brands raises $50 million led by L Catterton - Gadgets Price

2021 was a rosy year for China-based Amazon suppliers looking for exits. Roll-ups, or brand aggregators, have flooded China’s export-oriented e-commerce market with capital to bring in sellers. The rollups themselves are fueled by venture capital like Silicon Valley’s Markai, which recently raised its $4 million starting round from investors like Pear VC and Sea Capital to acquire Chinese brands.

Other aggregators targeting China have brought in larger amounts. Nebula Brands, a Beijing-based Amazon aggregator, said on Tuesday it has closed a Series B financing round of more than $50 million. The investment was led by the Asian fund of L Catterton, a global private equity firm known for its focus on consumer technology.

Funding from the latest round also included Nebula’s Series A investor Matrix Partners and its angel investor Alpha Startup Fund. The company has raised approximately $60 million to date.

As Amazon grew into a behemoth, many of its third-party Chinese suppliers also prospered and became multimillion-dollar companies. These exporters now need more capital and talent to support growth, and the top-performing exporters are given two options: get equity financing to scale further, or sell the business and move on. The last path is where roll-ups come into play.

“China’s third-party vendor market is experiencing rapid growth, with the ability to scale quickly and efficiently deliver high-quality products to Amazon customers around the world,” Nebula co-founder. William Wang said in a statement.

“The model of bundling fulfillment by Amazon suppliers and strengthening their operations has already proven extremely effective in some markets in the west and will take off in China, where Nebula Brands is in charge.”

With the new revenue, Nebula is grappling with a slew of foreign aggregators on the hunt for Chinese sellers, including Berlin Brands Group, Razor Group and Thrasio. The startup, which was only launched in May, has already acquired one supplier and is on track to close several more deals by the end of the year, it told Gadgets Price.

Nebula currently has a team of more than 50 employees in China “with deep knowledge of the market and extensive local sourcing, underwriting and operational experience from previous positions at renowned e-commerce, technology and financial companies,” the company said. . The co-founders are Ryan Ren, who was CEO of a “publicly traded company,” William Wang, former chief of integrated marketing at Lenovo, and Hardys Wu, former chief of supply chain at Wayfair.

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