Ecommerce Startup Company Berlin Brands Group Plans to Invest $302 Million in D2C Business Acquisitions

By James White Saturday, January 30, 2021

Wooden cubes spelling out "D 2 C" next to a magnifying glass.

In the age of giant ecommerce retail companies like Amazon and eBay, the direct-to-consumer (D2C) market has opened the doors for businesses large and small to cut out the middleman and sell directly to their customers. Ecommerce startup company Berlin Brands Group is planning to direct $302 million toward uniting D2C businesses under its roof.

Quality Brands Under a Single Name, Other Than Amazon

“In the M&A [merger and acquisitions] market, one big difference between the US and Europe is that the latter is more fragmented,” said entrepreneur and Berlin Brands founder Peter Chaljawski. “In the US, D2C sellers do a lot on Amazon. In Europe, there are still lots of alternatives. And in some markets like France, consumers don’t even like Amazon.”

Founded in 2005, the Germany-based digital marketplace began by turning its focus to acquiring audio equipment brands. The startup company is now expanding into 28 different markets with 14 brands, including Klarstein, Capital Sports, and Auna. The business continues to grow its platform by acquiring products under various departments similar to those you would also find on Amazon’s marketplace. Departments such as home and garden, electronics, and home appliances.

Boasting over 100 channels for sales and promotions of its businesses and brands, the startup company claims to see 3 million users visiting its webshops on a monthly basis. The entire portfolio of products under the business can be found on Electronic-Star, the primary marketplace of the startup company.

Direct-to-Consumer Ecommerce on the Rise

Last year, the startup company reported a revenue of about $363 million, which was up from about $121 million in 2015. The success of the budding business likely stems from the health of the D2C industry. Market research projected D2C sales in the US to grow by 24.3% in 2020, nearing an expected value of almost $17.8 billion. However, competition certainly is not scarce. Amazon touts an immense market cap of $1.62 trillion and reported net sales of $96.1 billion in Q3 2020.

“We rank among the top marketplace sellers on Amazon globally,” Chaljawski states on the company website. However, most of our revenue is generated outside Amazon, mostly through our own D2C webshops.”

Summary

Digital marketplace and startup D2C retailer Berlin Brands Group plans to invest $302 million to acquire more businesses and add to its increasing portfolio of products. The D2C industry is expected to experience continued growth as the business displays improving annual revenues. The market is still dominated by Amazon, though the startup offers a young but impressive alternative to the ecommerce giant.

About the Author


Headshot for author James White

James White is a Michigan State University graduate with a B.S. in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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