Barcelona-based Yaba, an aggregator of digital brands that sell on Amazon, announced that it has raised $85M (nearly €77.29M) in funding in equity and debt round.
The round was led by US-based VC firm Crossbeam Venture Partners, a firm that focuses on the themes of platform economies, fintech, novel asset classes, and new forms of media; and Tikehau Capital, an alternative asset manager with $38B of AUM, through its special opportunities’ strategy. The latter has also committed to support the growth and development of Yapa.
Ali Hamed, co-founder of Crossbeam, says, “Yaba’s approach to online brand management is dual-focused, looking not only at how to acquire brands but also on growing and expanding them. With this holistic approach and the team’s experience in e-commerce and online brand management, Yaba is well-positioned to continue empowering digitally native brands to the next level in Europe and beyond.”
Other investors, including 10x Founders, Bonsai, Village, JME, and Inveready, as well as prominent family offices and business angels from Latin America, Spain, France, and Italy, also participated in this round.
“Fastest growing Amazon seller/aggregator in Southern Europe”
Founded in 2020 by Alejandro Fresneda, David Baratech, Rubén Ferreiro, Sergi de Pablos, and Patxi Archanco, Yaba is dedicated to buying and scaling companies with potential within the Amazon universe. Its aim is to increase sales of the acquired companies by improving their sourcing as well as their presence in the main marketplaces, among other growth levers.
The companies acquired by Yaba are sorted into different verticals, among which are household products, beauty, baby care, sports, and pet care.
Yaba says that the value that it brings to its sellers is based on improved stock management, optimised sourcing, professionalisation, and increased investment in the branding, marketing and positioning of the companies. It also focuses on higher product quality, improved packaging and international distribution.
Currently, the company has 40 local team members in Spain, France, Italy and Mexico.
Capital utilisation
Yaba claims that the raised funds will allow the company to grow by acquiring new Amazon sellers, as well as by adding talent and increasing marketing investment in the brands it has acquired to expand their businesses.
Co-founder David Baratech says, “We will use the capital injection to continue to buy brands in the verticals we are already in, as well as to expand into others that complement our brand holding. In this regard, we are considering acquisitions in categories such as outdoor, lighting, etc. By the end of this year, our objective is to incorporate around 15 new companies and thereby construct a portfolio of at least 30 brands. Furthermore, our three-year target is for Yaba to achieve an aggregate turnover of at least $170M.”
Future plans
After acquiring 12 companies in its first year and generating an aggregate turnover of more than $20M, Yaba has specialised in acquiring digital native brands dedicated to selling home, beauty, sports, baby care, and pet care products.
Among other brands, the company has acquired Banbaloo, a brand of bed guards for infants; and Superscandi, a Swedish brand of eco-friendly wiping cloths.
The company reports that it relies on technology to increase efficiency in every area of its business, from origination – where it helps the company to identify potential targets that meet its investment criteria, to operations – where the company has used data collection to develop real-time dashboards which provide visibility into the day-to-day operations of its brands, as well as predictive models to aid decision making and action plans.
