Another retail startup raises $2.5M in seed to help sell excess inventory

Corina Marshall spent 11 years working in retail digital marketing and realized the industry was outdated.

In particular, the technology that helps retail brands sell unsold or excess products (out-of-channel inventory) is not as sophisticated. Brands sell excess inventory at discount retailers like Nordstrom Rack, but often lose money because managing unsalable inventory is difficult. Products are spread out in warehouses, and teams are left to estimate the value of items and when is the best time to sell them.

“It takes so much time to go through each step of the channel inventory funnel, it makes it difficult to move products to the most desirable destinations for brands and retailers,” Marshall told TechCrunch.

They decided to give the off-channel market a technological boost. In 2024, he launched another company, a software system that helps companies manage unsold or surplus products. The secondary market where these goods are usually sold operates on a strict timeline and can display dynamic prices due to fluctuating demand. For a successful retailer in a place like Nordstrom Rack, it must have quick access to real-time data and coordination so that clothes can move from the store to the warehouse to store efficiently, he said.

Others connect to existing software systems in the business, such as those that manage customer returns, to focus more on the organization’s data and workflows. This way, teams across the company can access data from the same place, making decisions more effectively.

The company announced Tuesday a $2.5 million seed round led by Anthemis FIL and Westbound.

Marshall said he met lead investors through an industry event last year, and said the fresh capital will be used to accelerate product development and hiring. They consider competing marketplaces like Ghost, another company that also helps brands sell unsold inventory.

Still, he said, Others hope to help companies deal with excess inventory before brands choose to sell goods to bulk retailers. He said items sold through these retailers may be heavily discounted, and brands don’t want that.

“Other technologies provide real-time data and insights that give teams confidence in when, where, and how to move inventory, making smarter decisions that maximize value instead of neglecting liquidation,” he said. Overall, he hopes his product will help move the industry toward a solution that better balances profitability and sustainability, as excess inventory is often destroyed if not moved quickly.

“Consumers get access to better prices, more options, while brands and retailers increase profits and reduce waste, making it a win for everyone involved.”