Razor Group has an interesting pitch. They say they are not just an acquisitions firm – instead, they acquire, operationalize, then transform. Read on to find out more about this expanding acquisitions firm.
Companies snapping up merchants selling on Amazon to build in more e-commerce economies of scale into the model are on a rapid pace of growth at the moment, fueled in no small part by giant infusions of money from the world of venture capital. In the latest development, Berlin’s Razor Group — one of the more ambitious of the aggregators out of Europe — has now raised $125 million of equity funding in a Series B round that CEO and co-founder Tushar Ahluwalia said pushes the company past a $1 billion valuation.
In a sea of startups that have collectively raised billions of dollars to scoop up smaller Amazon-based merchants, Razor believes that its numbers speak to it being one of the biggest, and possibly the biggest of all in Europe, even as more 70% of its revenues are actually generated from the U.S..
Razor said that it is profitable on a group Ebitda basis; going to post $400 million in revenues for the year ending in December; and on track to pass $1 billion in sales in 2022, on a business model that Ahluwalia claims is not simply based on en masse “rolling up” smaller Amazon merchants that have been built on top of the e-commerce giant’s marketplace and fulfillment (FBA) infrastructure. Its ambition: yes, buy them up, but then integrate them into a wider operation and eventually move away from being wholly dependent on Amazon.