As per the report it is found that Amazon platform Jungle Scout has almost raised around $110 million for expanding to additional online marketplaces for the first time within its six-year history. Also, it avails Amazon ad-tech company Downstream Impact for giving it a position in Amazon Advertising.
Both the growth equity firm Summit Partners and Jungle Scout CEO Greg Mercer follows the unrevealed round in 2018.
As per Mercer, Jungle Scout has planned to utilize the process to support Walmart’s third-party marketplace “within the next two months.” He also added, “Right now, we support most of the Amazon marketplaces, but there are a few other ones that we don’t. We will be releasing support for Walmart very shortly and then if all goes to plan later on this year, we’d like to expand to some more marketplaces as well.”
The company makes utilization of the capital for building the data collection and analysis. Now, Jungle Scout has processed data for more than 500 million Amazon products that offer insights into keywords, sales, and trends.
However, Downstream will benefit the Jungle Scout in optimizing brands’ Amazon Advertising campaigns also. It was established in 2017 by two former Amazon employees. It is the Downstream that helps in managing almost $250 million a year in Amazon ad which spends on brands that include Bic and HP
Mercer mentioned, “Advertising on Amazon has become more and more popular … it’s kind of required in order to succeed, and all of our customers were telling us, ‘Man, you have everything that we need, except there’s this one missing piece of the puzzle, which is Amazon Advertising,” “So that’s when we started to set our sights towards an acquisition because it felt like there was already a handful of pretty good solutions out there on the market.”
Additionally, for each Jungle Scout figures Amazon Advertising has gained almost $21.5 billion in revenue in 2020. It marked an almost 66% year-over-year increment. Well, a Jungle Scout study of 5000 Amazon sellers found utilizing 75% minimum one of Amazon advertising.
Mercer also brought to notice that Jungle Scout is interested in additional acquisitions, but it didn’t disclose further details.
Further, Jungle Scout planned to invest in data science teams and products. Notably, jungle Scout is planning to double its headcount from 200 to 400 this year. This involves two offices in China. It has its first office opened two years back in Shenzhen to cater to Chinese sellers.
He said, “We did it as a little bit of a test because we saw the rising number of Chinese residents selling on Amazon. I would say its gone better than expected.”
On the other hand, Jungle Scout followed with offices in Hangzhou and Qingdao.
“It started out as just marketing and sales and local language. It has expanded now so there’s customer support teams and then there’s also now product teams building features and functionality specifically for the Chinese audience.”