Dragonfly - Volition Capital

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Dragonfly utilizes proprietary technology to consolidate and optimize leading Amazon third-party sellers through acquisitions and internal product development capabilities.

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About Dragonfly

Founded in 2020, Dragonfly consolidates and optimizes leading Amazon FBA businesses. The Company utilizes a proprietary sourcing engine to identify critical demand signals, consumer ratings, and growth prospects across key verticals on Amazon. Dragonfly leverages its team’s domain expertise to improve the positioning and product portfolio of acquired brands to accelerate growth and drive profitability.

Background

Co-founders Philip Butler and Jeremy Todd previously founded another startup in the Amazon ecosystem that algorithmically arbitraged Amazon product prices internationally. Through this experience, management realized that many brands on Amazon lack the infrastructure for professional management, yet have a density of reviews and premium search placement on Amazon because of their sales history.

Management set out to build Dragonfly to capitalize on the opportunity to identify attractive Amazon categories with long-term stability, drive sales and margin improvements within an acquired portfolio of FBA sellers through market and product expansion, and unlock both operational efficiencies and international expansion opportunities.

Why We Invested in Dragonfly

Internet platforms provide out-of-the-box enterprise infrastructure and immediate scaled distribution. This has created a wave of new digitally-enabled entrepreneurs with cash generative businesses that lack an exit strategy. Amazon’s third-party marketplace represents a ~$130B market, which is currently 58% of total Amazon sales. There were more than 8 million third-party sellers on Amazon globally in 2019, with over 225,000 sellers generating at least $100,000 in sales, up 25% annually.

After meeting Dragonfly’s two Co-founders, we believed there was a shared vision, differentiated by proprietary technology driving a unique lens on Amazon’s most investable categories, to execute on this large market opportunity of potential acquisition targets and build a leading, profitable Amazon FBA consolidator.