Asian e-commerce brand aggregator Rainforest has closed a US$20 million pre-Series A round led by Monk’s Hill Ventures. Other investors participating in the oversubscribed round are January Capital, Crossbeam Venture Partners, Amasia, Lo & Behold Group together with existing investors Nordstar and Insignia. Accial Capital is the debt provider for Rainforest, providing a previously announced US$30million debt facility.
The fresh funds will be used to double down on Rainforest’s aggressive growth strategy as it looks to acquire more Asia-based e-commerce brands, helping them to scale up and expand beyond its markets across Europe and America.
By the end of 2021, the company plans to grow its current portfolio of e-commerce brands by three times. Rainforest will also be expanding its key leadership team with strategic senior hires adept in acquisitions, branding and marketing, product development, supply chain, operations and strategy.
To that end, the company recently hired Yev Ivanko as vice-president, acquisitions, and Christine Ng, vice-president , brands. Each brings with them over 15 years of experience in international expansion and business development.
“With this round of funding, we look forward to providing well-deserved exits for more brand-builders across Asia and continue to scale up the brands they created,” says JJ Chai, Rainforest’s CEO and co-founder.
Rainforest now has over US$50 million for acquiring high-potential, e-commerce brands in Asia that are revenue-positive and category challengers in their niche, focusing on home goods, mother and kids, personal care, and pet categories. The company works with its brands to improve inventory management, cost optimizations and expansions to new marketplaces and channels. To date, Rainforest’s portfolio has seen over 50% improvement in annual growth rates post-acquisition.
Recently, the firm also acquired a China-based brand for US$3.6 million as part of its latest initiative to expand its services into the Chinese market, especially with China-based merchants representing 75% of new sellers on Amazon early this year, a number that is projected to grow.
