SellerX, a Berlin-based aggregator of Amazon sellers, has acquired Elevate Brands, its American industry peer. They will operate together as SellerX Group, which aims to become “one of the largest and most profitable global consolidators of e-commerce brands”.
The SellerX Group announced the acquisition in a press release. The annexation creates a company with a portfolio of over eighty Amazon-native consumer brands. Together, they offer a range of over forty thousand products in segments such as sports & outdoors, home & kitchen, mobile accessories, pets and consumables. These brands generate an annual revenue of over 400 million euros.
“Bringing together complementary global footprints, the joint business will cover both the European and US-markets with a roughly even revenue split across the two regions”, the SellerX Group states. Philipp Triebel, co-founder of SellerX and Co-CEO of the combined company, describes Elevate Brands and SellerX as “a perfect match”:
‘A strong cultural fit, a shared vision, and complementary capabilities.’
“This acquisition combines our know-how and diversified portfolio of strong brands with a market-leading technology platform and strong operational infrastructure.”
Leveraging a combined operational platform, the company aims to realize significant synergies across the value chain and “achieve an attractive profitability profile” through operational efficiencies. Furthermore, SellerX Group will have the ability to expand omni-channel distribution capabilities in local markets, including into traditional retail channels.
According to ecommerce intelligence firm Marketplace Pulse, there are currently 93 Amazon aggregators, with 55 of them having communicated their funding rounds. SellerX is the second-highest funded aggregator after Thrasio, having raised 1.4 billion dollars so far.
Berlin has proven to be a fertile ground for Amazon aggregators. Behind SellerX, Berlin Brands Group and Razor Group, also based in the German capital, occupy the third and fourth spot on Marketplace Pulse’s capital-raised list. The market for Amazon aggregators experienced rapid growth during the COVID-19 pandemic when online spending surged, but the growth has now slowed down.
Berlin is fertile ground for Amazon aggregators
New round of equity financing
The acquisition is expected to be finalized by the end of June 2023, subject to customary completion conditions. Existing shareholders of SellerX and Elevate have agreed to invest over 60 million euros in a new round of equity financing.