China contains an enormous growth potential for FBA aggregators and FBA businesses in general. Nebula Brands is snapping up Chinese export brands that sell products around the world with great success. Read an interesting angle on what’s new in the Chinese aggregation market in this article.
2021 has been a rosy year for China-based Amazon vendors looking for exits. Roll-ups, or brand aggregators, have been flooding China’s export-oriented e-commerce market with capital to scoop up sellers. The roll-ups themselves are fueled by venture capital, such as Silicon Valley’s Markai, which recently raised its seed round of $4 million from investors like Pear VC and Sea Capital to acquire Chinese brands.
Other aggregators targeting China have raked in greater sums. Nebula Brands, a Beijing-based Amazon aggregator, said Tuesday that it has closed a Series B funding 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 consumer tech focus.
Financing the latest round also included Nebula’s Series A investor Matrix Partners and its angel investor Alpha Startup Fund. The company has raised roughly $60 million to date.
As Amazon grew into a behemoth, many of its third-party Chinese vendors also thrived and became multimillion-dollar businesses. These exporters are now in need of greater capital and talent to sustain growth, and the top-performing ones are given two options: get equity funding to scale further, or sell the business and move on. The latter path is where roll-ups come into play.
“The Chinese third-party vendor marketplace is experiencing rapid growth, with the ability to quickly scale and provide high quality products efficiently to Amazon customers across the globe,” Nebula’s co-founder William Wang said in a statement.