Ecommerce aggregator RubiBrands has raised 21.35 million euros in a seed round. It is the first ecommerce aggregator to launch in Turkey. The company will use the capital injection to increase acquisitions.
Istanbul-based RubiBrands acquires and scales up brands based in Central Eastern Europe, Middle East and Africa with the aim to transform them into marketplaces. It has already acquired 7 brands and is active on over 15 channels, such as Amazon, Trendyol and Allegro.
€21.35 million euros in funding
The company announced that it has raised 21.35 million euros (23 million dollars) in seed funding. According to RubiBrands, this investment is the largest seed funding in Turkish ecommerce.
“We acquire brands that are shielded from bona-fide FBA aggregator competition and supply chain bottlenecks. We prefer to invest in larger, more established an highly profitable brands and partner up with the founders”, says Chief Investment Officer Irtek Uraz.
‘RubiBrands wants to generate a €102 million euro annual revenue in 12 months.’
The company is planning to grow quickly. “Our goal is to become the leading ecommerce aggregator in the region, reaching 25 brands, 12 million unites shipped and a 102 million euro annual revenue in the next 12 months.”
Supply chain bottlenecks
Ecommerce aggregators have been growing rapidly since the business model first saw the light in 2020. RubiBrands wants to set itself apart from competitors by using Turkey as a central logistics hub. While most brands source products from Asia, RubiBrands targets sellers that have weak ties with Asia.
“We aim to overcome the margin erosion caused by supply chain problems. Bypassing sourcing from Asia creates significant service level benefits. Additionally, being close to manufacturers allows us to innovate faster and control the quality of our products”, says CEO Yetkin Güneş.
‘Bypassing sourcing from Asia creates significant service level benefits.’
The company acquires Amazon brands, as well as sellers active on other channels. “We believe going beyond Amazon and winning in other marketplaces as well as D2C channels creates diversification of revenue and consumer reach.”