The New York City-based startup Acquco has raised USD 160 million in debt and equity in a Series A round as announced on May 11, 2021. The money put in the round is from CoVentures, Singh Capital Partners, Crossbeam and other investors like GoDaddy CEO Aman Bhutani even invested his money in the equity portion of the round.
The company has refused to disclose the valuation at which the money was raised, nor the exact breakdown of debt and equity but has said that the major portion of the money was raised through equity. The company has said that it will use the funds for “aggressive growth plans” which are to scale its portfolio to over USD 500 million of revenue by 2022 and to continue working on the technology platform.
About Acquco
Founded in 2020, with its headquarters in New York and with the founders Raunak Nirmal and Wiley Zhang, who are Ex-Amazonians, have now built a multi-dollar business on its platform.
With every business going online in 2020, Amazon is one such platform that has benefited a lot because of this shift who is expected to have 40% of the e-commerce activity in the US under its control. The sellers have also made profits and many sellers have reached a threshold, a “growth wall”, and do not have capital or expertise to broaden the business further. This is where Acquco plays its role.
Using its proprietary lead generating system, the company is able to find out the best business to acquire and use founder-friendly deal structures which allow sellers to immediately monetize while also taking part in the future growth of their brand. Post-acquisition, the company employs unique operational playbooks and technology which automates processes to accelerate the top-line growth of brands across Amazon and other retail channels. On average, Acquco achieves over 100% revenue growth after migrating the brand onto its platform.
There have been many startups that work on acquiring third-party sellers on Amazon and help them expand their business, but this business is different as it has been formed by the people who actually worked in Amazon. Acquco’s Chief Strategy Officer Jerel Ho, who most recently led Corporate Development and Strategy at WeWork & was previously a career investment banker, has closed over $40B in M&A deals. They use the technology to automate the management and carry out all the operational functions efficiently. Acqcuo has built technology servicing other core functions of the Company, including Sales and Acquisitions to source untapped deal flow, automate due diligence, and rapidly onboard brands.
The company closes the deals in less than 30 days. The company in less than a year has been able to earn more than USD 100 million of revenue to date and has used less than USD 2 million of the equity capital.
What does the CEO say?
“My unique experience at Amazon originating and leading core initiatives with over $1 billion in annual revenue impact provided me deep insights into the primary pain points and challenges that Amazon sellers face every day,” said Raunak Nirmal the Founder and CEO of Acquco, “Combining these perspectives with over 7 years of direct experience operating and innovating within the Amazon ecosystem has allowed me to generate a truly differentiated edge and understanding of the Amazon universe. Leveraging this edge, Acquco has been able to rapidly scale in less than a year and raise a substantial amount of capital – allowing us to further accelerate the growth of our competitive moat.”
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