Olsam Group acquires Dwarfs
Olsam, a British ecommerce aggregator has acquired Dutch competitor Dwarfs. The amount involved in the acquisition was not disclosed. At the same time, the combined company, called Olsam Group, will receive an enlarged credit facility to pursue future acquisitions.
Dwarfs is a Dutch ecommerce aggregator, which acquires and scales successful marketplace sellers. Last year, it raised 30 million euros in a funding round. That brought the company’s total funded amount to 60 million euros. According to the company, it is the only aggregator in the Benelux that has a strong position on Dutch marketplace Bol, as well as Amazon.
Last year, Olsam also acquired MarketFleet, a competitor from the United States.
Its competitor Olsam raised 139 million euros in funding in 2021. In that same year, it acquired another competitor called Flywheel Commerce. Last year, it acquired US-based MarketFleet. This is also an Amazon seller acquisition company. After that acquisition, Olsam said that it is active across three continents in 15 countries.
Leveraging expertise on Bol
By adding Dwarf’s portfolio, Olsam is now managing a range of brands that will generate over 100 million euros in annual sales by 2024. The company wants to bring brands from the US to Europe. It will leverage Dwarf’s expertise on Bol, in order to do that.
‘The acquisition adds valuable omni-channel capabilities into our team.’
“This acquisition not only strengthens our presence in the Benelux region but also adds valuable omni-channel capabilities and insights to our team”, said Sam Horbye, co-founder of Olsam Group. “We believe that by combining our expertise in Amazon with their deep understanding of Bol.com, and best in class new product development capabilities, we will unlock new opportunities for growth and provide even greater value to our customers.”
Funding into aggregators dropped 88%
Just last month it was announced that Thrasio, one of the first marketplace aggregators, is planning to file for bankruptcy. According to research by CB Insights, there is less and less investment in these types of companies. In 2022, funding for marketplace aggregators fell 88 percent. This current acquisition could be a way to improve the cost structure of both Dwarfs and Olsam.