Neato moved into a 60,000-square-foot facility in Las Vegas.

COURTESY OF NEATO

Neato, a 2P eCommerce accelerator that partners with consumer brands as their exclusive online retailer, said today that it has raised $25 million in growth capital led by Advantage Capital, positioning the company to expand its online retail partnership model.

The investment will support the launch of two new operations centers in Las Vegas and Chicago with integrated eCommerce prep capabilities, expansion of their AI agent stack and accelerate Neato’s expansion beyond Amazon.

“The raise is partly being used to expand our operational footprint,” said founder and CEO Anthony Connelly. “We’ve already moved into a new 60,000 square foot facility in Las Vegas and moved into new offices. With all of the verticals we have within our niche, all the square footage is very important for us to continue to grow.”

The round reflects a broader shift in e-commerce toward operators helping brands pilot and guide more fragmented marketplace environments across channels.

“The most sophisticated brands in the world have recognized that marketplace execution at the highest level requires purpose-built infrastructure, technology, logistics, advertising, content and brand protection, which doesn’t make sense to replicate internally,” said Connelly.

“These channels are too important and too complex to treat as a side project," he added. "The brands winning on marketplaces aren’t the ones trying to do it all themselves, they're the ones who've partnered with dedicated operators who bring operating leverage, so the brand can compete at the top tier with zero capital expenditure and only pay on performance. The ROI on the margin they share far exceeds what they'd achieve building it alone.”

Authentic Brands Group, which owns 50-plus global brands, including Reebok, Champion, Forever 21, and Juicy Couture, selected Pattern as its Global Ecommerce Marketplace Accelerator in December 2025.

“Rather than building internal marketplace teams across its portfolio, ABG made a strategic decision to centralize ecommerce operations, inventory planning, fulfillment, advertising, and brand protection through a dedicated operator. Connelly said, “That’s a $32 billion retail portfolio choosing to partner with a specialist rather than go it alone.”

Connelly noted that Bath & Body Works launched its first authorized Amazon storefront in February after acknowledging that $60 million to $80 million in gray market sales were already occurring on the platform and were diluting the brand. CEO Daniel Heaf said at the time that BBW would never be able to compete with Amazon’s Prime fulfillment network, so rather than try to build that capability, they partnered to access it.

"The e-commerce enablement sector is at an inflection point,” said Philip Ruppel, principal at Advantage Capital. “Capital is flowing toward operators that align their economics with brand success rather than extracting fees from complexity. Neato’s 2P model, combined with their expansion beyond Amazon into other channels, positions them at the center of where marketplace commerce is heading.”

Marketplace integration is the cornerstone of modern day retail success. With eCommerce development occurring quickly, business operators have to learn ways to sell their products across platforms that include Amazon and Walmart along with TikTok Shop.

Neato’s top competitors include Pattern, Front Row Group and Spreetail. Pattern has raised $225 million led by Knox Lane and later completed a $300 million IPO. Spreetail raised $208 million, backed by McCarthy Capital, and Front Row Group received a strategic investment from Charlesbank. Knox Lane said ecommerce and digital marketplaces are evolving rapidly, while Charlesbank pointed to long-term shifts toward ecommerce and the growing opportunity for service providers that help brands scale online.

Walmart Marketplace, not a direct competitor, for example, is one of the fastest-growing eCommerce platforms, and continues to invest in capabilities and solutions to fuel seller success and offer customers an endless aisle of items.

"We want to be able to service our brands the way we want to," Connelly said. “Our expansion of our agentic AI is extremely important. We’ve given every employee a new system that we’re building right now and it’s basically turning everyday employees into brand builders.”

Neato’s brand catalog is also growing. “We have the money and are supporting a lot more brands,” Connelly said. “We’ve niched up on every single year the size of brand we’re managing. Now, we’re at the middle market to the upper middle market, just underneath the enterprise threshold. We have the ability to expand to more enterprise brands.”

Cofounder and president Spencer Jacobs said operational expansion is job one. “As retail.com becomes larger and larger, and takes more and more of the lion’s share of how people sell online, you have two bad options,” Jacobs said. "One, you try to figure it out yourselves or you sell to the 800 pound gorilla in the room, Amazon.

“We sell on the same platform you would sell on yourself but we’re not the 800 pound gorilla," Jacobs said. "We’re emotionally supportive and our economics are aligned with yours.”

It wasn’t always this way. In 2019, Connelly and Jacobs were wholesale distributors, and they weren’t happy. “We were selling anything we could realistically get our hands on,” Connelly said. "It wasn’t the business we wanted to go forward with. We wanted to build something that had intrinsic value. We were only providing value for ourselves.

“I walked into the office one day and said, ‘We’re not going to sell anything where we don’t have a relationship with the brand.’ Connelly recalled. Jacobs said, ’That’s the majority of our revenue.’ We started building every single component. We’re now at 18 different specialties and we’re evolving those and opening new functions within the business and continue to master our craft.”

Neato, which buys inventory directly from brands and manages the full lifecycle of selling online, from listings and creative to advertising, logistics, and reporting. sees more funds in its future. "There’s a lot more money coming into the space," Connelly said. “There’s definitely deals in the pipeline that we know of. There’s a lot more coming.”