The Benitago Group, a startup building a large portfolio of Amazon brands, is announcing that it has invested $ 55 million in new funding – $ 3 million in equity and $ 52 million in several credit lines for the acquisition.
“We want to take these brands and develop them and run them more efficiently,” said the co-founder of Santiago Nestras.
Other startups have also raised big rounds to roll out the Amazon FBA (Fulfillment by Amazon), but Nestras told me that Benitago is different because it doesn’t focus on “financial intermediation”. Instead, it has created a detailed, repetitive blueprint to continue these businesses.
Nestares and his co-founder Benedict Dohmen (they each gave the company a few syllables for its name) introduced Benitago, while students at Dartmouth with back pain brand Supportback. The company has since expanded into categories such as beauty, maternity and nutrition, but Nestras said they increased revenue, without raising much capital before now.
Team members, as a result, may not specialize in orthopedics, but have been successful because they are “hyper-focused” on how brands can develop on Amazon, which Nestras described as “Amazon natives” Have done
The process usually starts with a comprehensive look at the competitive landscape and what customers are saying in their reviews. Then, Nestares said, “We design everything around Amazon, from design selection to how to create color in packaging.” [to] The way the product fits in the Amazon box. “
The company said that the process takes only a few weeks when it acquires the brands, and that the previous owners have a financial stake in the continued growth of the brand.
“It’s not a passive financial game, it’s an impact growth game,” Nestras said.
Amazon is unlikely to ever lose its e-commerce dominance, but Nestares acknowledged that building Benitago’s business on a single platform is its “biggest risk.” Also, he suggested that the startup is very different from, say, companies that could be threatened at any time that Google changes its search algorithm.
“I think Amazon is different, because Amazon has the same goal for you: selling as much to the customer as they can,” he said.
Benitago currently operates five brands with a total of over 100 products. With the new funding, the number could increase dramatically – Nestras said there are 12 new brands in development, while he hopes to acquire another 25 or more brands by the end of the year.
The equity fund was led by CoVenture, which also provided a $ 50 million line of credit.