Business Fintech & e-commerce Retail and Direct To Consumer Venture

Thrasio Brings In $500M Debt Facility To Go After Bigger Acquisitions

Digital consumer goods company Thrasio raised a $500 million senior debt facility, pumping up its total amount of capital raised to more $1 billion since being founded in 2018.

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The raise comes six months after the Medfield, Massachusetts-based company raised $260 million in Series C funding led by Advent International. Thrasio acquires successful Amazon third-party businesses and direct-to-consumer e-commerce brands and integrates them into its digital consumer goods platform.

The company touts the management of 14,000 products on its marketplace. In 2020 it exceeded $500 million in sales and generated more than $100 million in profit, co-founder and co-CEO Joshua Silberstein told Crunchbase News.

The debt financing includes a group of high-profile companies. It is led by JPMorgan Chase Bank, The Private Credit Group of Goldman Sachs Asset Management and RBC Capital Markets, which were joined by the Strategic Credit Group within Oaktree Capital Management, Bain Capital Credit, Barclays, BlackRock, BofA Securities, Credit Suisse Loan Funding, Monroe Capital, Morgan Stanley Private Credit and UBS Securities.

“When we think about building long-term capital structure, bringing in debt means the value of the company to the shareholders is higher,” Silberstein said. “We will raise more equity, but there is almost no price where we wouldn’t return triple digits.”

Indeed, more startups are eyeing debt facilities as a way to increase their balance sheets during late-stage financing.

With the new capital, Thrasio will be able to broaden its investments and acquire larger companies.

Thrasio is also focusing on international expansion, having recently launched a team in Germany, where it has already completed two deals in the last quarter, as well as spun up a team in Japan in the past week. Beyond that, Silberstein is looking at India and China as other potential markets.

“We’ve never bought a company with $180 million revenue, not because they don’t exist, but up until now we have shied away from that space,” Silberstein said. “Now we are in position to do multiple deals with companies in the $50 million to $200 million revenue range.”

Illustration: Li-Anne Dias

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