Olsam secures $165m in Series A equity and debt funding round

Sam & Ollie Horbye, Olsam

Sam (L) & Ollie Horbye

Olsam Group, a company which buys and scales e-commerce businesses, has successfully raised $165 million in a Series A equity and debt round.

The equity investment was led by Christian Angermayer’s Apeiron Investment Group and Elevat3 Capital, which counts Peter Thiel’s Founders Fund as a strategic partner.

Alongside the equity raise, the debt financing round was led by European special situations investor North Wall Capital, from the firm’s dedicated e-commerce lending strategy. Stanhope Capital advised Olsam on the transaction.

Olsam will use the capital raised to rapidly acquire larger brands from global entrepreneurs seeking a reliable buyer with deep operational expertise for their companies. The funding will also be used to expand the Company’s operations team across its core markets and to continue investing in its proprietary operating tech platform, as well as deepen its brand IP and patent protection across multiple geographies, including China.

Founded by an ex-Amazon marketplace team, Olsam is the only operator in the space where the leadership team have started, scaled, and sold multiple Fulfilled by Amazon (FBA) brands.

Globally in 2020, Amazon’s vast ecosystem of six million sellers generated over $300 billion in sales, growing 50% year over year. This grew again by 61% in Q1 of 2021, which would make this ecosystem the 42nd largest economy in the world.

Firms acquiring successful brands on Amazon have attracted around $7 billion in capital over the past twelve months, with almost 3,000 sellers in the UK hitting $1 million in turnover. With more than half (53%) of product searches now starting on Amazon, compared to 23% starting on search engines, there is a huge opportunity to scale e-commerce businesses across global marketplaces.

Sam Horbye, Co-founder of Olsam and former Business Marketplace Manager at Amazon UK, said: “We’re in the midst of a retail revolution. We feel the Amazon marketplace platform has democratised the playing field of online retail. Small ‘mom and pop’ business owners are taking on the traditional consumer goods giants (Unilever/Procter & Gamble), building defensible category leading brands which in terms of customer reviews, tower above them!

“Olsam is acquiring and growing the best of these, whilst putting the well-being and ongoing success of its firms at the core of its objectives.”

Ollie Horbye, Co-founder of Olsam, said: “Olsam is thinking far bigger than purely buying brands. Leveraging our own experience as Sellers, we’re using this capital to continue to invest in our operating platform and advance our existing brands, by tracking millions of real time data points on the marketplace.

“Our platform will allow us to drive continual omni-channel expansion growth into new ecommerce marketplaces like Walmart as well as via social commerce through Instagram, Facebook and TikTok. We’re really only at the beginning.”

Christian Angermayer, Founder of Apeiron Investment Group and Elevat3 Capital, said: “The senior team behind Olsam is what makes this business truly unique, having all been successful in building and selling their own brands within the market and having worked for Amazon in their marketplace team – their understanding of this space is exceptional. “

Fabian Chrobog, Founder and Chief Investment Officer at North Wall Capital said: “We are delighted to be supporting the team at Olsam and we’re particularly pleased that they took advantage of our offer to link their cost of capital to ESG compliance.

“Our firm sees tremendous growth potential in lending to European e-commerce businesses as retail sales continue to transition online, and today’s investment is funded from North Wall’s dedicated strategy focused on this industry.”

Nigel Spray, Head of Merchant Banking at Stanhope Capital said: “We are pleased to have advised the Olsam team on their financing to accelerate their growth. The transaction sets the path for the next generation of e-commerce players where technology and scale will have an even more important role in the future.”

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