Rainforest raises US$21.5 million in a convertible notes from existing investors
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Sharon See
E-COMMERCE aggregator Rainforest has raised US$21.5 million in a convertible note round from its existing investors, including Canopy Tropics, Monks Hill Ventures, Insignia Venture Partners and January Capital.
This brings its combined debt and equity funding to over US$100 million to date, the startup announced on Tuesday (Oct 3).
It expects to use the funds for new acquisitions and platform capabilities to accelerate channel expansion, geographical expansion and product development for its brands.
Separately, Rainforest reported a revenue of US$37.5 million for its financial year 2022, a jump of nearly nine times compared to the previous year’s US$4.2 million.
This was the result of it acquiring six brands in 2022, the company said, as well as the “organic growth” of its previously acquired brands.
Still, it posted a net loss of US$10 million, compared with a US$2.1 million loss in the prior year, its first year of operations. This comes as the company continues to invest in its team and technology platform to operate and grow its portfolio of brands.
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“What the filed numbers don’t show is that the team had also made fantastic inroads towards profitability, leading us to Ebitda (earnings before interest, taxes, depreciation and amortisation) profitability in 2023,” said JJ Chai, chief executive and co-founder of Rainforest. “Our investors have recognised this and continued to support us with fresh capital.”
Rainforest operates a portfolio of 16 brands, mostly in the parents and kids categories. These include diaper backpack brand Babbleroo, toy storage brand Lilly’s Love, and baby furniture brand Comfy Bumpy.
The company added that it is planning to make further acquisitions before the end of the year, including brands with more omnichannel distribution.
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