Published On: Sat, Mar 27th, 2021

Benitago Group raises $55M in total debt and equity to buy and grow Amazon brands

Benitago Group, a startup looking to build a large portfolio of Amazon brands, is announcing that it has lifted $55 million in new appropriation — many of it in a form of credit lines to account acquisitions, and an equity investment.

“We wish to take these brands and expansion them and run them a lot some-more efficiently,” pronounced co-founder Santiago Nestares.

Other startups have also lifted large rounds to hurl adult Amazon FBA (Fulfillment by Amazon) businesses, though Nestares told me that Benitago is opposite since it’s not usually focused on “financial arbitrage.” Instead, it has combined a detailed, repeatable plans to continue flourishing these business.

Nestares and his co-founder Benedict Dohmen (they any gave a association a few syllables for a name) started Benitago while students during Dartmouth, with a behind pain code Supportiback. The association has subsequently stretched into categories like beauty, maternity and nutrition, though Nestares pronounced they saved that expansion with revenue, though lifting most outward collateral before now.

As a result, group members might not have been experts in, say, orthopedics, though they’ve succeeded since they’re “hyper-focused” on how brands can grow on Amazon, apropos what Nestares described as “Amazon natives.”

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The routine customarily starts with a extensive demeanour during a rival landscape and what business are observant in their reviews. Then, Nestares said, “We pattern all around Amazon, from a underline preference to a approach we emanate a colors in a wrapping [to] a approach a product fits in an Amazon box.”

The association pronounced that when it acquires brands, a routine usually takes a few weeks, and that a prior owners keep a financial interest in a brand’s continued growth.

“This isn’t a pacifist financial play, it’s an an impact expansion play,” Nestares added.

Amazon is doubtful to remove a e-commerce prevalence anytime soon, though Nestares concurred that building Benitago’s business on a singular height is a “biggest risk.” At a same time, he suggested that a risks aren’t a same as, say, those faced by companies who are threatened any time Google changes a hunt algorithm.

“I consider Amazon is different, since Amazon has a same idea as you: To sell to a patron as most as they can,” he said.

Benitago now operates 5 brands with some-more than 100 sum products. With a new funding, that series could boost dramatically — Nestares pronounced there are 12 new brands in development, while he’s also anticipating to acquire another 25 or some-more brands by a finish of a year.

CoVenture led a equity appropriation and supposing one of a credit lines.

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