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Productsup eyes M&A targets

Illustration: Tiffany Herring/Axios

Productsup, a Berlin-based channel management platform for retailers, has its eye on acquisitions, co-founder Marcel Hollerbach tells Axios.

Why it matters: Valuations have come down for startups crunched by economic conditions, creating an environment ripe for M&A.

Details: Productsup, which helps retailers manage product-to-consumer information value chains, seeks profitable businesses that can help it expand geographically, Hollerbach says.

  • This could be in companies in France, Southern Europe, or parts of Asia, he says.
  • Productsup could also look to add new features to its capabilities via acquisitions, like marketing or digital-shelf analytics.

What they’re saying: “It’s an interesting time right now, especially if you are decently funded,” he says, noting the valuation environment has yielded myriad opportunities.

  • “Because we are big enough of an organization now to be able to digest basically, new targets…we will have a playbook on how to buy and acquire and integrate,” he says.

Catch up fast: Productsup raised a $70 million Series B last year, led by European growth equity firm Bregal Milestone with participation from Nordwind Capital.

  • The company acquired World of Content last year to add product content syndication and smoother vendor-retailer collaboration to its product consumer platform.
  • Ikea, Sephora, Home Depot, Macy’s and Aldi are among its customers.

What’s next: While Europe is still its core market, North America is its fastest-growing region, Hollerbach says.

  • He expects to see most of its growth coming from North America in the next three to four years.
  • The company also plans to employ generative AI for a variety of use cases around content creation, especially for product descriptions and images.
  • From a capital standpoint, the company doesn't plan to seek another raise for at least another two years, Hollerbach says.
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