What Perch's $775M Series A Means for Sellers
Yesterday we announced that Softbank’s Vision Fund 2 led a $775M Series A investment in Perch, with participation from Spark Capital and Victory Park Capital. This is huge news for the entire Perch team, our investors, valued partners, and the many Amazon third-party sellers and D2C brands in this ecosystem!
We want to reiterate that we're going stay true to our Perch identity, valuing transparency and honesty with sellers and a highly analytical and tech-first approach to innovate and automate at scale. If anything, this round will only help us double down on our dynamic culture (we're hiring) and accelerate our momentum.
With this in mind, we wanted to pull out some notable statistics about the funding, our company milestones, our vision for the future, and what all of this means for Amazon third-party sellers and D2C brands.
This is the largest ever Series A raised by a Consumer Goods company, nearly quadrupling the previous record, and it’s the second largest U.S.-based Series A ever. It brings our total funding to date to over $900M.
Perch has been profitable since inception. In just over 18 months since our founding in November 2019, Perch has reached a 10-figure valuation, becoming the fastest ever US-based profitable unicorn, shattering the previous record by nearly 9 months.
Notable Company Milestones and Highlights
Acquisition Engine Humming: The investment comes after we've surpassed a major milestone, with over 70 brands acquired to date and many others under agreement. By investing heavily in our technology platform, we have made integrating brands seamless and pain-free for sellers, closing on over 2 brands a week in 2021 year to date.
Portfolio of Quality Products: Perch’s portfolio has accumulated 500,000+ reviews on Amazon, with an average rating of 4.5 stars. Take a look at a sampling of our brands here.
Successful Growth Playbooks: Perch’s Growth team has extensive experience building growth playbooks for Amazon-native as well as major Fortune 500 brands. As a result, the average Perch brand saw 75% YoY growth in Q1.
International Expansion: Over 35% of Perch’s portfolio sells into the EU and other international markets today, with another 15% currently enroute, and plans to continue to scale globally moving forward.
B&M and Physical Retail Expansion: Perch has several brands that sell into brick and mortar (B&M) retailers with physical products in-store such as Target, Walmart, Costco, and Kroger. Perch has also built out a dedicated team to drive sales in B&M with experience selling into Grocery, Value, and Specialty retailers.
“We are building the next-gen Consumer Products company, ” said Chris Bell, our CEO. “This investment is a powerful validation of our amazingly talented team, data-first playbooks, and long-term vision. This isn’t a standard roll-up play; we’re meaningfully investing in our brands and a unifying technology platform. Our highly analytical and tech-first approach allows us to innovate and automate at scale, driving efficiencies from supply chain logistics to listing optimization. We plan to use these funds to invest in the team and platform, drive additional brand upside through additional channels and geographies, and continue to acquire the best products and brands.”
Technology is and will be a huge differentiator for Perch, and though others in the space claim to be investing in technology, Perch has taken meaningful steps to do so in-house: ~25% of our team are software engineers.
Investors have taken notice.
“As one of the largest investors in eCommerce platforms globally, we understand the critical role third party sellers perform in driving Amazon’s marketplace growth. Through its unique technology platform, Perch is providing third-party sellers with the resources to help scale and manage their businesses,” said Lydia Jett, Partner at SoftBank Investment Advisers, which led our Series A round. “We are excited to partner with Chris and the Perch team to support their mission of developing great eCommerce brands.”
“Perch’s success across their 70 brands is undeniable,” said Alex Finkelstein, General Partner at Spark Capital. “They have gone from one of the earliest movers in a rapidly evolving industry to a leading eCommerce player on Amazon and beyond. We are excited to watch Perch expand on their success and redefine an industry.”
What This Means for Sellers
With this funding, Perch can now acquire more and larger sellers on Amazon and beyond. While we'll continue to acquire Amazon FBA businesses, we're now able to acquire a broader spectrum of third-party sellers and D2C brands. We've built out capabilities to handle increasingly complex businesses, and our technology platform is allowing us to unify everything in-house to integrate and optimize them seamlessly.
From the very beginning, we've been so impressed by and privileged to work with successful entrepreneurs on Amazon. It has been such a joy to reward their hard work with much-deserved capital, and we're excited to only accelerate this! If you're ready to exit your business, please contact us and talk to our wonderful acquisitions team!