Main Amazon aggregator Thrasio is delaying the SPAC deal as high executives depart
Thrasio, an early leader in the big business of Amazon aggregators, had a booth at the popular Prosper Show for Amazon sellers in Las Vegas, Nevada on July 14, 2021.
Thrasio, the leading U.S. third-party aggregator of Amazon, rushed to the public markets to fuel its rapid expansion. However, the company has delayed its plan to go public through a SPAC due to complications with its financial audits, according to people familiar with the matter.
Thrasio was aiming for a reverse merger with a special purpose vehicle by the end of the year before changing course in the summer, said people who did not want to be named as the plans were not publicly discussed. The company could still seek a SPAC, but is also considering other financing options, including a traditional IPO, it said.
Revenue in the C-Suite increases the challenges for Thrasio. CFO Bill Wafford, a former CFO of JC Penney, left Thrasio in July, just three months after joining the company. Thrasio said it has named Brian Cooper, chairman of marketing company Networx, as interim CFO
And last month, co-founder Josh Silberstein stepped down from his role as co-CEO, leaving his co-founder, Carlos Cashman, as the company’s sole CEO.
Bloomberg reported in June that Thrasio was in talks to merge with a SPAC led by former Citigroup executive Michael Klein at a valuation of up to $ 10 billion. The auditing process proved to be more difficult than it would be for a typical e-commerce or tech company as Thrasio now oversees more than 200 Amazon brands and creates a complex balance sheet, the source said.
Daniel Boockvar, President of Thrasio, confirmed to CNBC on Friday that the company had decided not to pursue SPAC for the time being, despite saying, “We never announced any firm plans to go public on SPAC.”
“Ultimately, our executive team and board of directors took a look at the market, which is no surprise, and decided that going public through SPAC was not the right choice at the moment,” Boockvar said in an interview. “We are doing amazingly well privately, and that is exactly what we will continue to do.”
Boockvar declined to comment on whether the company would consider going public or other funding options, but said that “all options are at our disposal”.
Thrasio, which was founded in 2018, and its competitors like Perch, Heyday and Branded are scaling by buying promising products and store fronts with the aim of leveraging their data and operational know-how to drive sales. According to Marketplace Pulse, at least 77 Amazon aggregators have raised a total of around $ 10 billion since April 2020.
Last month, Thrasio announced that it had raised $ 650 million in a senior loan facility, bringing its total debt and equity raised to more than $ 2.3 billion. Today, the company serves more than 200 brands with over 22,000 products in a range of categories from skin care and camping equipment to housewares and fitness products.
Thrasio was ranked 22nd on CNBC’s Disruptor 50 list that year.
SEE: What’s behind the big hype and multi-billion dollar aggregator startups buying Amazon seller brands?