Thrasio Raises Major Capital in Debt Facility as Company Continues to Grow

By Thomas Price Tuesday, January 19, 2021

With the COVID-19 pandemic causing limited capacity restrictions and shutdowns of many retail stores, the subsequent boom in ecommerce sales during the past year has been significant. As a result, businesses that run primarily or even exclusively on Amazon have garnered a lot of attention. Acquisition company Thrasio, in particular, has been taking even stronger notice of more Amazon-based businesses. With the growth of ecommerce, Thrasio has grown significantly, which has led to the company raising a massive amount of capital. Considering the rise of ecommerce, what role does Thrasio have in the ecommerce market, how much capital did the company raise, and what can be expected from them in the future?

Thrasio’s Business Model

Thrasio is an acquisition company that mainly focuses on buying and subsequently growing Amazon-based businesses. Since the company began in 2018, it has acquired an impressive 100 different businesses, upgrading that business’s marketing, product development, and supply chains in order to boost sales. Most of these brands are bought by Thrasio for upward of $1 million, though for Thrasio, that cost is well worth it.

In fact, in 2020, the company generated an impressive $500 million in sales through these acquired brands, and those sales have resulted in over $100 million worth of profits. These impressive sales numbers have led to strong growth from Thrasio as well, with the company doubling its workforce last year to 700 employees. Despite this growth, the company still has had some difficulties in acquiring larger Amazon-based businesses, instead having to purchase brands that make $40 million or less over the course of a fiscal year.

Thrasio’s Recently Raised Capital

Thrasio’s limited purchasing power, however, will not continue, as the company recently raised an incredible $500 million in senior debt facility. This new capital was raised from many different large-scale banks and financial institutions such as JP Morgan Chase, Goldman Sachs, BlackRock, Barclays, UBS, Credit Suisse, and RBC. This newly acquired capital will go toward major plans that Thrasio has for the future.

The company’s main priority will now be to acquire much larger Amazon-based businesses that have annual revenues of $200 million or more over the course of the fiscal year. Thrasio may also be introducing anywhere between 250 to 500 new products throughout 2021 as well.

When speaking on the way Thrasio operates and the company’s future plans, co-founder and CEO Josh Silberstein said, “There are a bunch of newcomers to this market feeling their way around. The reality is that they are still playing checkers. I wouldn’t even say we are playing chess. We are far beyond chess.”

Final Conclusions

Thrasio is changing how businesses operate on Amazon. Through acquisition, the company has become a leading retailer, selling a massive variety of different products. With the most recently raised capital, it appears that the company is set for major growth over the course of this year as it begins to acquire larger and larger Amazon-based businesses.

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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