Lessons Learned from the FBA Consolidation Space
Thrasio was the first mover to recognize the market opportunity to aggregate FBA sellers. The founding team recognized a market opportunity that was highly fragmented with cash productive assets, lacking liquidity options in a market experiencing significant secular growth.
The summation of these attributes was the ability to acquire assets at below-market multiples of profitability. With the ability to scale earnings and profitability, there was a multiple arbitrage opportunity, where the sum of the parts commanded a higher valuation multiple than the individual underlying assets.
Thrasio received its seed funding of ~$6M in April of 2019 to execute this aggregation and professionalization strategy. Flash forward less than three years later, and there has been $14B+ in funding across 50+ Amazon aggregators.