Mapping the global boom of ecommerce roll-up firms

The ecommerce roll-up industry is one of the hottest segments in the world right now, and Asia is catching on to the hype.

Tech in Asia first wrote about this space in March, when former Lazada CEO Pierre Poignant raised US$150 million in a single round for his new venture, Branded Group, joining the frenzy of startups in the West that acquire brands on Amazon Marketplace.

Since then, the industry is still moving incredibly fast. Marketplace Pulse estimates that aggregators have raised at least US$7 billion so far this year.

In this landscape map, we’ve included most players from the US, EU, UK, and Asia, prioritizing those who have disclosed funding.

A few points are worth noting here.

Some of the global players, like Thrasio, Berlin Brands Group (BBG), and Branded Group, have been growing their teams in China – mostly in Shenzhen – as part of the race to acquire sellers in the country.

In a previous interview with Tech in Asia, BBG CEO Peter Chaljawski notes that “China is the battlefield.”

BBG, which has raised US$940 million, officially expanded to China in June. Thrasio is reportedly investing US$500 million in the market as well.

There are reasons behind this rush to China: About 38% of Amazon’s top sellers are currently based in the country, according to Marketplace Pulse estimates.

But this momentum may be slowing down due to the Covid-19 pandemic and Amazon’s crackdown on China-based third-party merchants.

Elsewhere in Asia, India has emerged as the new hub for local ecommerce aggregators, with more than US$300 million in funding raised just this year by companies that are barely one or two years old.

Southeast Asia is catching up – Rainforest, Una Brands, and Hypefast are the only startups in this space that have come out of stealth mode and have raised significant VC funding. They’re betting on local knowledge to access brands or deals in Asia that US-based aggregators might overlook.

Regional roll-up firms also hope to distinguish themselves by going beyond Amazon.

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