Listen to this articleNeato, a Las Vegas-based 2P eCommerce operator, has raised $25 million in growth capital led by Advantage Capital. The funding will accelerate its expansion as an exclusive online retailer for CPG brands, broadening reach across new marketplaces and geographies while advancing AI driven capabilities.
Neato, the Las Vegas-based 2P eCommerce accelerator, has secured $25 million in growth capital led by Advantage Capital. This round fuels the company’s push to scale its model of acting as exclusive online retailer for consumer packaged goods brands, extending operations beyond Amazon into a broader set of marketplaces, channels, and geographies while deepening technology capabilities.
What is Neato?
The company, founded in 2018 by CEO Anthony Connelly and co-founder Spencer Jacobs, originated as a wholesale distributor before pivoting around 2020 to address a core pain point for brands: fragmented and inefficient management of online sales. Neato buys inventory outright from partners, becoming the seller of record and assuming full ownership of the profit and loss statement. It then executes every aspect of online retail (catalog management, content creation, advertising, pricing optimization, logistics, fulfillment, customer service, reporting, and brand protection) under a single accountable team. Brands supply product on negotiated terms and retain strategic oversight (messaging, guardrails, channel selection), while Neato handles day to day operations as an embedded retail partner rather than a fee-based vendor or agency. This alignment eliminates the typical agency model of charging for discrete services and instead ties Neato’s success directly to sell through performance and margin protection.
Neato targets upper middle market to pre enterprise CPG brands in categories including pet products, hard goods, grocery, beauty, supplements, and personal care. These companies often sit in an underserved gap: too large for patchwork internal teams or consultants yet not massive enough to command priority attention from enterprise scale operators that juggle hundreds of accounts with generic playbooks. By operating from a unified inventory pool across channels, Neato delivers retailer-like efficiency (demand planning, warehousing, and unit economics) while layering in full funnel advertising, creative studio output (photos, video, A+ content, brand stores), social commerce (TikTok Shop, creator programs), and “direct to consumer” capabilities (Shopify storefronts, subscriptions, retention). The result is simplified vendor management, reduced cost to serve, transferred inventory risk, and consistent brand elevation without dependency on multiple external partners.
The $25 million infusion will directly support three strategic pillars. First, it funds the opening of two new operations centers in Las Vegas and Chicago equipped with integrated eCommerce prep infrastructure, expanding physical capacity for faster fulfillment, inventory handling, and multi channel scaling. Second, it accelerates development of Neato’s AI agent stack, which already powers dynamic pricing, inventory forecasting, and advertising optimization; further investment will enhance automation and predictive capabilities across a growing portfolio. Third, and most critically, the capital accelerates geographic and platform expansion beyond Amazon into additional marketplaces and global channels where Neato’s brands’ customers already shop. The company currently operates in 10 countries and maintains a top 500 Amazon storefront; this round positions it to replicate its model on platforms such as Walmart, social commerce environments, and hybrid D2C setups.
Recommended: Miravoice Raises $6.3 Million In Seed Funding Round
Neato enters this phase with proven momentum. It ranked as the 39th fastest growing company in the United States on the Inc. 5000 list in 2022 and has surpassed nine figures in cumulative revenue. The timing aligns with a broader inflection in the commerce enablement sector, where institutional capital increasingly favors operators whose economics are synchronized with brand outcomes rather than volume based fees or complexity extraction. Traditional paths for brands, selling directly to Amazon as first party (surrendering pricing and control), operating as third party sellers (managing complexity internally or via fragmented agencies), or handing over accounts to large consolidators, frequently result in margin erosion, diluted brand experience, or operational overload. Neato’s 2P approach offers a third path: predictable, high touch execution that scales profitably from one inventory source.
Advantage Capital’s leadership of the round underscores confidence in the model’s durability. The investor highlighted the sector’s shift toward partners that prioritize brand success over transactional fees, noting that Neato sits at the center of evolving marketplace commerce. With new facilities, AI enhancements, and multi channel reach, Neato can now serve a wider portfolio with deeper specialization, potentially capturing share as brands seek resilient growth engines amid ongoing platform fragmentation and rising advertising costs.
The funding validates Neato’s evolution from distributor to full stack retail operator and equips it to capitalize on persistent brand frustrations with online channel management. By owning execution while aligning incentives, the company is positioned to deliver compounded growth for partners and itself, extending its track record of rapid scaling into a more diversified, technology augmented omnichannel footprint. This move strengthens Neato’s role as a differentiated player in a market that rewards certainty, simplicity, and measurable retail outcomes over traditional service layer approaches.
Please email us your feedback and news tips at hello(at)techcompanynews.com
