Opontia Earns $ 42 Million to Buy More E-Commerce Brands in Eastern Europe, Middle East and Africa – TechCrunch

E-commerce roll-up play Opontier Launched in June with $ 20 million in debt and capital Get An old, small e-commerce brand from the Middle East and Africa. Today, the company confirmed that it has closed on TechCrunch. Subsequent Round, $ 42 million Series A nine months after establishment.

Roll-up play is generally known to secure more debt than equity when trading mega rounds. Opontia’s seed round was true, but in Series A funding, equity and venture debt shares are about 50% each.

STV led the round with participation from Raed Ventures, Global Founders Capital, Upper90 and Venture Souq.. Angel investors Salman Butt of Salla and Wiktor Namysl of McKinsey Poland also participated. Partners for Growth, a San Francisco-based venture capital firm, funded Opontia’s debt financing.

TechCrunch has collected that Opontia has switched its focus to the target market somewhat. Despite launching with a focus on the Middle East and Africa, the company has made significant strides in only some of the former (UAE and Saudi Arabia) and has made significant strides in Central and Eastern Europe, especially Turkey and Poland.

“There is a chance. This is However It’s not the biggest market, “said co-founder and co-CEO. Philip Johnston Said when asked why Opontia wasn’t in Africa yet.. “For example, Poland is six times as large as Egypt. in terms of E-commerce spending. We definitely go to Africa.we However First we are doing the biggest market. So if you need to prioritize, go to the largest market and then go down. in terms of The largest markets for us are Poland, Turkey, Saudi Arabia, United Arab Emirates, Nigeria, followed by Egypt and Pakistan. “

Most of the e-commerce rollup brands we have covered — Promotion, Heroes, SellerX, Rainforest, Una brand Perch, Berlin Brand Group, Thrasio, heyday, Razor group, brand, Benitago, Valoreo — Use a similar playbook that Amazon merchants are catching.

In the regions where these companies operate, Amazon is a ubiquitous marketplace that uses fulfillment arms and Prime services as the infrastructure to sell products and process orders... The rollup business persuades smaller players to sell their brand on Amazon’s market, thereby consolidating the brand into one brand and managing its operations...

However, there are slight operational and geographic differences in Opontia. According to the founders of Opontia, Thrasio, Berlin Brands, Branded focusing In Western Europe, Opontia found its beginnings by targeting Eastern and Central European brands...

Also, with the exception of Opontia, none of these players are active in the Middle East. And unlike the more prominent players, Opontia pursues an omni-channel model rather than targeting a single model. mainly “FBA” — Amazon Fulfillment — Business..

“”In my opinion One of our unique values ​​is that we are building like a branded home with an omni-channel setup. That is, compared to Thrasio completely Focusing on FBA, we focus on three different sales channels: Marketplace, Website, Shopify, and Social Commerce.Co-founder and Co-CEO Manfred Meyer Said.

“That is, the acquisition seems to be a 50% marketplace right now, but it’s a 50% marketplace and Shopify. What we’re doing is For real It’s like building a setup that can serve all your customers Directly, It’s not just the Amazon Marketplace. “

The founder Talked to TechCrunch In June, they said Opontia claimed to be in talks with “more than 100 small e-commerce brands” and signed several termsheets...

Since then, we have purchased four brands, including Novimed, a direct-to-consumer outfit that sells UAE-based medical devices and remedies. And since the acquisition of Novimed in August, Opontia says it has quadrupled the brand’s revenue and doubled its profits.

“Opontia exists because we’ve found that CEEMEA has grown its brand to a certain level, but now there are many e-commerce entrepreneurs who need help to take it to the next level.” The founder was acquired by Opontia as a viable option for the brand.. “We give the founders an attractive exit, while at the same time giving them a share in the future growth of the brand’s profits as they expand. rapid, ”

The company said it wanted to Get 20 more brands across Eastern Europe and Central Europe and the Middle East in 6 months. NSAt least two-thirds of the investment in Series A, about $ 30 million, according to Ornston. Used Make these acquisitions.

Opontia has also hired a former executive of Jumia Kenya as Vice President of Operations. The executives are Istanbul, Warsaw, Saudi Arabia, and the United Arab Emirates.