Ecommerce roll-up firm targets $100m investment for brand acquisitions

Rainforest, a Thrasio-style ecommerce roll-up firm headquartered in Singapore, is targeting to deploy over US$100 million to acquire digital retail brands in 2022.

(From left) Rainforest co-founder and CTO Per-Ola Rost, co-founder and CEO JJ Chai, and co-founder and CFO Jason Tan / Photo credit: Rainforest

“The total investment amount will depend on the fundraising, but we see a deep enough selection of brands in our target space to deploy well over US$100 million toward acquisitions in 2022,” JJ Chai, the company’s co-founder and CEO, told Tech in Asia.

Rainforest has acquired 12 brands so far, which it plans to triple this year. It will continue to focus on categories where the target buyers are modern mothers, such as maternity, baby, and home.

It is currently in the process of getting to know investors that can be helpful for its next stage of growth.

The company has achieved an annualized revenue milestone of US$30 million for its first full year of operations. According to Chai, its topline was led by acquisitions and growth from its brand portfolio. Among the brands that Rainforest acquired last year include baby care retailer Easy Baby Travelers, toy organizer brand Lilly’s Love, and home bedding seller Feel At Home.

“Our portfolio of brands grew 3x faster than the US ecommerce market in the second half of 2021,” said Rainforest.

Launched in 2021 by Chai, who previously held executive positions at Airbnb and Carousell, and Jason Tan, who was the former CFO of Ovo and Fave, Rainforest acquires and scales Amazon marketplace sellers in Asia. This year, the company’s acquisitions will not be limited to retailers selling on Amazon.

Photo credit: Rainforest

In terms of acquisitions, the startup focuses on Asia Pacific-based brand owners selling internationally. Most Rainforest brands sell to consumers in North America and Europe.

“We expect that to continue, with a heavy focus on China, where there is a large pool of cross-border sellers,” said Chai. Earlier this month, the company announced the launch of its China business.

The startup has so far raised US$26.5 million in equity and US$30 million in debt from investors such as Monk’s Hill Ventures, Nordstar, and Insignia.

See also: Why these ex-Carousell, Fave execs raised $36.5m to join the global Amazon roll-up frenzy