About Berlin Brands Group
Berlin Brands Group operates as a company focused on creating, building, buying, and scaling consumer brands. It offers a wide range of products, including kitchen appliances, garden and living items, sports equipment, and HiFi products, which are sold through various channels including direct-to-consumer e-commerce, online marketplaces, and wholesale. Berlin Brands Group primarily sells to the e-commerce industry. Berlin Brands Group was formerly known as Chal-Tec. The company was founded in 2005 and is based in Berlin, Germany.
Research containing Berlin Brands Group
Get data-driven expert analysis from the CB Insights Intelligence Unit.
CB Insights Intelligence Analysts have mentioned Berlin Brands Group in 1 CB Insights research brief, most recently on Jan 24, 2022.
Expert Collections containing Berlin Brands Group
Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.
Berlin Brands Group is included in 2 Expert Collections, including E-Commerce.
Companies that sell goods online (B2C), or enable the selling of goods online via tech solutions (B2B).
Unicorns- Billion Dollar Startups
Latest Berlin Brands Group News
Jun 19, 2023
Amazon Aggregators Face a New Reality Amazon aggregators acquire and try to grow the businesses of marketplace sellers. During Covid, aggregators thrived amid brick-and-mortar shutdowns, attracting huge amounts of capital. But last year many aggregators encountered financial headwinds. While the acquisitions slowed only slightly in 2022, ecommerce sales declined owing to consumers returning to in-person shopping. Exacerbating the problem are Amazon’s seller fee increases, rising by more than 30% since 2020 and putting a dent in aggregator profits. Some are now laying off staff, merging with other aggregators, and looking for new ways to generate revenue. Funding According to CB Insights, after peaking at just over $6 billion in 2021, global funding to Amazon aggregators declined by 88% in 2022, and just five funding deals closed in the first five months of 2023. About 75% of the funds aggregators have received are loans, not equity investments — for acquisitions, not operations. Most of that money is unused because some larger aggregators have stopped acquisitions. Many aggregators pay as much as 18% interest on these loans. Some can’t meet their debt payments. Aggregators sometimes offer merchants incentives beyond the purchase price when they buy the business. However, over the past year promised performance earn-outs did not always materialize because sales did not reach the threshold or even declined. Two aggregators — SellerX and Perch — have been sued for not honoring their contracts with the selling firms. SellerX was accused of not promoting a brand it bought. Some owners that sell to aggregators stay around to help. But most move on to something new, relying on the aggregator to generate revenue for performance payouts. Consolidation There are currently 93 active global Amazon aggregators according to Marketplace Pulse. Aggregators are addressing the slowdown in funding and reduced revenue in various ways. The top 25 through May 2023 are: Thrasio. Walpole, Mass., $3.4 billion Berlin Brands Group. Berlin, Germany, $1.3 billion Razor Group. Berlin, Germany $1.1 billion Perch. Boston, Mass., $908 million Heyday. San Francisco, $800 million Dragonfly. Boston, Mass., $500 million Merama. Mexico City, $445 million Growve. St. Petersburg, Fla., $400 million Benitago Group. New York, $380 million Boosted Commerce. Los Angeles, $380 million Moonshot Brands. Oakland, Calif., $340 million Unybrands. Miami, Fla., $325 million GlobalBees. New Delhi, India $296 million The Ambr Group. New York, $273 million Heroes. London, U.K., $265 million Cap Hill Brands. Seattle, $250 million Monolith Brands Group. New York, $230 million Mensa Brands. Bangalore, India, $218 million Society Brands. Canton, Ohio, $204 million Accel Club. Amsterdam, The Netherlands, $170 million Olsam Group. London, U.K., $165 million Acquco. New York, $160 million Nebula Brands. Beijing, China. $156 million Branded. Paris, France. $150 million Intrinsic. New York. $128 million Earlier this year California-based Boosted Commerce laid off 20% of its staff. Leading aggregator Thrasio laid off an undisclosed number of employees last year, and the company’s new CEO Greg Greeley told Forbes magazine that Thrasio incorrectly assumed ecommerce demand would remain at pandemic-era levels. Greeley said Thrasio had to “recalibrate expectations” and ensure it’s not holding excessive inventory or offering too-high acquisition prices. Analysts have asserted aggregators overpaid for a high percentage of the merchant brands. Now aggregators are acquiring each other, often on a global level. In May, Berlin-based SellerX bought Austin-based Elevate Brands. Together the companies will have 80 Amazon marketplace brands and annual sales of $426 million. In April, Razor Group acquired Stryze, two Germany-based aggregators. Earlier this year two smaller U.S. aggregators merged — Suma and D1 Brands. The combined business, now called The Ambr Group, operates a portfolio of more than 30 businesses, generating over $100 million in annual revenue. Business Model Changes The premise of the aggregation model is that it results in economies of scale and more marketing expertise and resources. Initially, once purchased by aggregators small brands did see a surge in sales but much of that likely was attributable to the Covid-19 shift to ecommerce. Once physical stores re-opened, ecommerce growth stalled, and small sellers looked less attractive to buyers. The estimated valuations of small sellers plummeted, causing some aggregators to pause acquisitions. Now roll-up companies are realizing that growing solely through acquisitions is not always sustainable. Some are launching their own brands rather than acquiring existing ones. Few barriers to entry exist in the aggregator industry. The long-term value of existing companies can decline if the products they sell are commodities. In a crowded market, only aggregators with flawless execution and distinctive products will likely survive. Share this article:
Berlin Brands Group Frequently Asked Questions (FAQ)
When was Berlin Brands Group founded?
Berlin Brands Group was founded in 2005.
Where is Berlin Brands Group's headquarters?
Berlin Brands Group's headquarters is located at Wallstraße 16, Berlin.
What is Berlin Brands Group's latest funding round?
Berlin Brands Group's latest funding round is Private Equity - II.
How much did Berlin Brands Group raise?
Berlin Brands Group raised a total of $938.71M.
Who are the investors of Berlin Brands Group?
Investors of Berlin Brands Group include Ardian and Bain Capital.
Who are Berlin Brands Group's competitors?
Competitors of Berlin Brands Group include Forum Brands, Rainforest, Una Brands, Wholesum, Accel Club and 7 more.
Compare Berlin Brands Group to Competitors
Thrasio operates as a consumer goods company in the ecommerce industry. The company primarily focuses on acquiring and enhancing fulfillment by Amazon (FBA) businesses. Its main services include working with sellers to improve product rankings, ratings, and reviews, and managing supply chain and marketing aspects to optimize commerce. It was formerly known as Thras.io. It was founded in 2018 and is based in Walpole, Massachusetts. In November 2023, the company filed for bankruptcy.
Perch operates as a technology-driven commerce company. It offers a wide range of products such as clothes, groceries, and more. It acquires and operates brands at scale to improve the quality of products that people use every day. The company was formerly known as Whele. It was founded in 2019 and is based in Wilmington, Delaware.
SellerX is a high-growth eCommerce company operating in the online retail industry. The company's primary service involves acquiring and scaling Amazon businesses, with the aim of transforming these brands into globally recognized entities. SellerX primarily serves the eCommerce industry. It was founded in 2020 and is based in Berlin, Germany.
Boosted is an acquisition company that focuses on third-party FBA (Fulfillment by Amazon) sellers on Amazon. The company offers these business sellers a closing process built on a commitment to fair and transparent negotiation. The company was founded in 2020 and is based in Beverly Hills, California.
Razor Group is a consumer goods holding company. It acquires and scales consumer brands for further expansion. The company was founded in 2020 and is based in Berlin, Germany.
Heyday operates as a platform for brand creation. It helps e-commerce entrepreneurs reach new heights by providing the capital, tools, and insights to accelerate their brands in the marketplace ecosystem. The company was founded in 2020 and is based in San Francisco, California.