D1 Brands Raises $123 Million In Latest Funding For Amazon Aggregators

New York City-based Amazon aggregator D1 Brands raised $123 million in Series A funding, the company announced Wednesday. The investment, which comes less than a year after the company was founded, is the latest in the increasingly crowded field of startups looking to capitalize on the success of third-party sellers in online marketplaces.

The round was led by CoVenture and Crossbeam Venture Partners, with an additional investment from ID8. D1 Brands declined to disclose its valuation or sales, but co-CEO and cofounder Yaz Malas says his company is profitable and predicts it will see revenue of $100 million by year-end. Competitor Thrasio, which has raised $2 billion to date, is valued at nearly $4 billion on 2020 revenues of $500 million, according to Pitchbook.

D1 is among a handful of companies that purchase third-party private labels and direct-to-consumer brands, which in turn sell on large-scale online marketplaces like Amazon and eBay. D1 currently owns 20 brands, ranging from MozArt, which sells arts and crafts supplies, to hair-cutting shears-seller Equinox, a flagship brand built by D1 cofounder Mohammad Usman.

“The pandemic hit and you had all these Amazon businesses that [doubled] in sales, and at the same time, this Amazon aggregator ecosystem is taking off,” says Malas, who cofounded D1 last September with Usman. “It was the perfect storm and we had the benefit of being one of the aggregators seeing a lot of opportunities.”