German e-commerce company Berlin Brands Group (BBG) has raised $240 million (approx £174 million) in debt financing to support the acceleration of global acquisitions of e-commerce brands.
UniCredit, Deutsche Bank, and Commerzbank were part of the banking consortium that extended the loan, says Reuters.
What we are currently seeing in global e-commerce is a real ‘game of brands’. It’s not about who can collect the most brands under their roof, but who can scale those brands the fastest and most effectively. The next Unilever, Procter & Gamble, or Whirlpool won’t be a classic house of brands, but rather a launchpad that gives brands the push and guidance they need to expand and grow,” said Peter Chaljawski, CEO of BBG.
How will the funding be used?
The funding will be used to support the acquisition of online retail brands in the US that are already making between $1 million (approx £726K) and $100 million (approx £72 million) in sales via marketplaces like Amazon.
Also, it is planning to acquire promising online retail bands in Europe and the UK as well, in the future.
BBG says the acquired brands will get access to a global market through its’s global scaling platform, which is connected to over 100 channels in 28 markets.
Top seller on Amazon
It’s worth noting that BBG is also one of the top sellers on Amazon, running its own logistics infrastructure, with nearly 1.3 million square feet of warehouse space in Europe, Asia, and the US.
Their top-selling brands include Klarstein (kitchen appliances), which accounts for the largest share of sales at over 50%, followed by auna (home electronics and music equipment), Capital Sports (home fitness), and blumfeldt (garden).
Our offering to U.S. e-commerce brands is unparalleled when it comes to accessing new markets,” said Henrik Haenecke, CFO of BBG. “The global e-commerce market is fragmented. For example, Amazon has a market share of about 10% in Europe. In countries like France or Poland, many other platforms dominate the landscape, which brands need to tap into in order to be successful. We offer access to a wide range of countries and channels, as well as a strong operational infrastructure to scale brands that we acquire.”
BBG runs a tech-enabled operating model with a deeply integrated supply chain. Founded in 2005, BBG employs over 900 people in five countries and currently sells more than 3,700 products through 14 of its own brands.
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