Benitago Group raises $55M in combined debt and equity to buy and grow Amazon brands

Benitago Group, a startup looking to build a big portfolio of Amazon brands, is announcing that it has raised $55 million in new funding — most of it in the form of credit lines to fund acquisitions, plus an equity investment.

“We want to take these brands and growth them and run them a lot more efficiently,” said co-founder Santiago Nestares.

Other startups have also raised big rounds to roll up Amazon FBA (Fulfillment by Amazon) businesses, but Nestares told me that Benitago is different because it’s not just focused on “financial arbitrage.” Instead, it has created a detailed, repeatable blueprint to continue growing these business.

Nestares and his co-founder Benedict Dohmen (they each gave the company a few syllables for its name) started Benitago while students at Dartmouth, with the back pain brand Supportiback. The company has subsequently expanded into categories like beauty, maternity and nutrition, but Nestares said they funded that growth with revenue, without raising much outside capital before now.

As a result, team members may not have been experts in, say, orthopedics, but they’ve succeeded because they’re “hyper-focused” on how brands can grow on Amazon, becoming what Nestares described as “Amazon natives.”

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 the feature selection to the way we create the colors in the packaging [to] (Read more...)