San Francisco-based Heyday locked up a $555 million Series C just six months after the marketplace brand-building platform closed a $70 million Series B.
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The round was co-led by The Raine Group and PremjiInvest, with participation from existing investors General Catalyst, Victory Park Capital and Khosla Ventures. The company has now raised a total of $800 million since being founded in 2020.
Heyday acquires and incubates brands in large marketplaces like Amazon, helping to accelerate the business through its platform by using data and expertise in areas like operations and marketing. While the company’s platform is “marketplace-first,” it also aims to enhance its brands’ products and look at additional sales channels like direct-to-consumer and even traditional brick-and-mortar shops.
“I think we are seeing one of the biggest tectonic shifts in e-commerce,” said Sebastian Rymarz, co-founder and CEO, who declined to disclose the company’s valuation.
A source familiar with the matter said the company is now valued at over $1 billion.
The marketplace aggregation space has grown rapidly this year. In just the last three weeks, Boston-based Thrasio announced the initial closing of a $1 billion Series D and Berlin-based Razor Group closed a $125 million Series B with a valuation of more than $1 billion.
“Our vision is that e-commerce will grow and marketplaces will take more of a share of that,” said Rymarz, who added it has been estimated online marketplaces currently make up about 62 percent of all e-commerce.
Jake Vachal, managing director at Raine, said Heyday is building an e-commerce brand platform similar to what large companies did decades ago in the brick-and-mortar space.
“Heyday aims to build this generation’s Procter & Gamble or Unilever with critical tools and resources that today’s emerging consumer brands require to build brand loyalty with customers, win their categories, and otherwise be successful,” he said.
The company has 15 brands on its platform currently—all operating in the Amazon ecosystem—and Rymarz said while Heyday will continue to make acquisitions, it will only do one or two a month, fewer than most of its competitors. He added the slower pace of acquisition is due to how Heyday looks to accelerate and grow each of its brands on the platform.
Heyday focuses on the spaces of functional home, lifestyle and personal care, with each brand having on average of about $15 million in revenue, Rymarz added. While only founded last year, Rymarz said the company will get to a $200 million run rate next month, and is not looking at stopping there.
“We are building a brand bigger than a $200 million run rate company,” he said.
Illustration: Dom Guzman
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