Profound Commerce Raises $53 Million to Acquire and Turbocharge E-commerce Brands
Profound Commerce, an acquirer and operator of Amazon third-party businesses, today announced it has secured $53 million in a combined equity and debt financing from Atalaya Capital Management LP, a private credit and special opportunities investment manager based in New York. The proceeds of the facility will be used to acquire additional e-commerce brands in keeping with Profound Commerce’s category-focused strategy, and to expand Profound Commerce’s operating platform.
The new financing underscores Atalaya’s confidence in Profound Commerce’s ability to find, operate and grow Amazon-native e-commerce brands in a profitable and capital-efficient manner.
“We’ve been acquiring and growing Amazon brands since 2018. While others have subsequently entered and raised eye-popping amounts of capital, we’ve instead focused on building processes and intellectual capital to nurture brands we acquire for the long term,” said Matt Howitt, CEO & founder of Profound Commerce. “We’re grateful to have Atalaya Capital Management as an investment partner and that they share our views. With this financing, we’re thrilled to be able to offer compelling exit opportunities for even more sellers who operate in our target categories and geographies.”
“Atalaya is excited to partner with Profound Commerce and support the team’s efforts to create a superior operating platform for e-commerce brands. Marketplace native e-commerce brands are here to stay, and Profound Commerce has demonstrated it has what it takes to create value in this space,” said Matt Spiro, Managing Director, Atalaya Capital Management LP.
Profound Commerce uses a flexible and data-driven approach to acquiring Amazon businesses successful in the consumer leisure and medical product categories. The team works quickly, fairly, and collaboratively with sellers to create a smooth transaction and integration. Offers are determined quickly and lucrative exits are achieved in 30 days. Sellers are impressed with Profound Commerce’s ability to address the hairy details of running a brand the right way and Profound Commerce’s deep knowledge of e-commerce, Amazon, digital marketing, and supply chain. Profound’s post-acquisition track record of 100% growth shows their commitment to invest in brands for the long term.
Smith, Gambrell & Russell, LLP acted as legal counsel to Atalaya Capital Management. Ropes & Gray LLP and Jones & Spross, PLLC acted as legal counsel to Profound Commerce.