BOSTON, Oct. 20, 2020 /PRNewswire/ -- Perch, a technology-driven commerce company that acquires and operates top Amazon Marketplace businesses with winning products in their respective categories, today announced that it has closed $123.5M in new financing.This brings the Company's total funding to date to over $130M. The round was led by Spark Capital and includes past investor Tectonic Ventures, with Boston Seed as a new investor. Perch will use the funds to continue to acquire category-leading products and companies, build out its core team, and further invest in its technology platform.
Third party sellers, with an estimated gross revenue of over $200B in 2019, and growing at a rate greater than 50% YoY in 2020, make up more than half of Amazon's retail revenue. Yet, despite the fact that 86 percent of third party sellers are profitable, there are often limited options and resources available for these entrepreneurs to take their products to the next level. That's where Perch comes in. Led by experienced executives from Wayfair and Bain & Company, Perch acquires high-quality consumer products and brands that have a steady history of strong customer reviews, are consistently one of the top products within their category, and that demonstrate opportunity for continued growth.
"There are millions of entrepreneurs and small businesses selling great products on Amazon's marketplace," said Chris Bell, CEO of Perch. "At the same time, more people are shopping online and looking to do their buying from the safety and security of their home. We are excited that this additional investment will allow us to accelerate our ability to acquire and grow leading FBA businesses that have long-term potential."
Perch's approach is to work fairly and transparently with entrepreneurs to move rapidly and cost-effectively through the acquisition process, benefitting both entrepreneurs and the Company. One of Perch's more recent acquisitions is Satina, which sells women's leggings, and is an Amazon's Choice product with over 28,000 reviews and recent coverage in US Weekly and Yahoo News.
"More and more of our acquisitions are coming from introductions and recommendations of prior sellers we've worked with – so our approach of treating each seller fairly and as a true partner is key to our success," said Nate Jackson, VP of Acquisitions at Perch.
Amazon was responsible for 45% of U.S. ecommerce spending in 2019 — a figure that is expected to rise to 47% this year.
"The Perch team has the M&A, eCommerce, and Amazon experience to understand what makes a quality and scalable consumer product and take those products to the next level post-acquisition," said Alex Finkelstein, General Partner, Spark Capital. "We are beyond excited to lead this round. Perch is already off to an exceptionally strong start. Given the booming eCommerce market, I expect we will continue to see record numbers and additional acquisitions this year."
To learn more about Perch, please visit: www.PerchHQ.com
Perch is a technology-driven commerce company that acquires and operates Amazon FBA businesses with winning products in their respective categories. Perch seeks high-quality products and brands that have a steady history of strong customer reviews, are consistently one of the top three products within their category, and have potential for expansion. Perch quickly evaluates opportunities, guaranteeing entrepreneurs a 48-hour response on their businesses' fit with its model and valuation range, providing a fast and risk-free way to understand their company's potential.
For more information, please visit: www.PerchHQ.com