Benitago Group, a startup aiming to build a big portfolio of Amazon brand names, is announcing that it has actually raised $55 million in new funding– most of it in the kind of line of credit to fund acquisitions, plus an equity financial investment.

“We wish to take these brand names and growth them and run them a lot more effectively,” stated co-founder Santiago Nestares.

Other startups have likewise raised huge rounds to roll up Amazon FBA (Satisfaction by Amazon) businesses, however Nestares informed me that Benitago is different due to the fact that it’s not simply focused on “financial arbitrage.” Instead, it has developed an in-depth, repeatable blueprint to continue growing these business.

Nestares and his co-founder Benedict Dohmen (they each offered the business a couple of syllables for its name) started Benitago while students at Dartmouth, with the back pain brand Supportiback. The company has consequently expanded into categories like nutrition, beauty and maternity, but Nestares said they funded that development with earnings, without raising much outdoors capital before now.

As an outcome, team members may not have actually been professionals in, say, orthopedics, however they’ve succeeded due to the fact that they’re “hyper-focused” on how brand names can grow on Amazon, becoming what Nestares described as “Amazon natives.”

Crossbeam raises $25M to back startups built on ‘‘ platform economies’ The process generally starts with a detailed take a look at the competitive landscape and what customers are saying in their evaluations. Then, Nestares stated,”We design everything around Amazon, from the feature selection to the

method we produce the colors in the product packaging [ to] the way the item suits an Amazon box.”The company said that when it obtains brands, the process just takes a couple of weeks, and that the previous owners keep a monetary stake in the brand name’s

continued development.”This isn’t a passive monetary play, it’s an effect development play,” Nestares added.

Amazon is not likely to lose its e-commerce supremacy anytime quickly, however Nestares acknowledged that building Benitago’s business on a single platform is its “most significant risk.” At the same time, he recommended that the risks aren’t the like, state, those faced by companies who are threatened any time Google alters its search algorithm.

“I think Amazon is different, since Amazon has the exact same objective as you: To sell to the client as much as they can,” he said.

Benitago presently runs 5 brand names with more than 100 overall items. With the new financing, that number could increase significantly– Nestares said there are 12 brand-new brands in development, while he’s likewise wanting to acquire another 25 or more brand names by the end of the year.

CoVenture led the equity funding and offered one of the line of credit.

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.