Tech
This startup buys up high-ranking sellers on Amazon. Take a look at the pitch deck these two brothers used to raise $165 million.
subscribers.
Become an Insider
and start reading now.
Have an account? .
- Olsam, founded by two brothers who used to sell on Amazon, has raised its first funding round.
- The tech startup buys and scales fulfilled by Amazon, or FBA, brands and helps them grow.
- Olsam raised $165 million in debt and equity using this pitch deck.
A startup that buys and grows high-performing sellers on Amazon has raised $165 million.
London-based Olsam, which was founded by brothers Ollie and Sam Hörbye, identifies top-tier e-commerce firms and offers to buy them out. Sam Hörbye previously worked at Amazon as a team leader at its marketplace arm while Ollie Hörbye held a number of roles in private equity.
subscribers.
Become an Insider
and start reading now.
Have an account? .
The startup specializes in fulfilled by Amazon, or FBA, brands, which are often third-party sellers that use Amazon fulfilment centers to deliver their products.
Marketplaces are booming as a sector but in some cases individual sellers have struggled to meet demand as their businesses grow. In the case of Olsam, the company acquires sellers and uses analytics and automation to improve and run microbrands.
E-commerce has boomed during the COVID-19 pandemic and in 2020, Amazon’s global ecosystem of 6 million sellers generated more than $295 billion in sales, growing 50% year over year.
“We’re tapping into the explosion in online digital marketplaces as part of a really exciting shift in retail,” Sam Hörbye told Insider. He previously ran one such microbrand known as Beechmore Books, which sells notebooks and planners.
Olsam says its platform can help to automate many of the manual processes that Amazon and other marketplaces employ around things like pay-per-click advertising. Individual sellers with growing businesses can face numerous issues, from the likes of Brexit and container shortages to selling into new countries.
The model works by promising high-growth sellers an “earnout” payment structure when they sell their business to Olsam, providing certain benefits to the original owner when the business hits relevant targets, meaning they continue to share in the upside.
“Sellers reach a certain ceiling for their brands because they would need to start hiring people and adding more tech,” Ollie Hörbye said. “These are often solo entrepreneurs working from a bedroom, and it’s a good option to start again from scratch.”
The $165 million of new funds comes in a Series A round from London-based Apeiron Investment Group and Elevat3 Capital. The startup also raised debt from North Wall Capital. Olsam’s raise comprises unspecified debt and equity allocations and was the brothers’ first VC fundraising experience.
The process was “a bizarre, crazy and intense experience,” Sam Hörbye said, adding that he and his partner also had a baby during the fundraising process.
The funding will go toward hiring core operations functions in multiple locations and further investing in Olsam’s proprietary tech platform.
Check out Olsam’s pitch deck below:
Olsam
Olsam
Olsam
Olsam
Olsam
Olsam
Olsam
Olsam
Olsam
Olsam
Olsam