Max Retail, a marketplace that makes it easier for independent retailers and brands to sell excess inventory, announced a $15 million Series A round led by Nosara Capital with participation from Rethink Impact. This funding round also includes continued support from LA-based VC M13, The Artemis Fund, and StandUp Ventures.
Small retailers in the US sit on a lot of excess stock, which, left unsold, represents anywhere from, and they see a large portion of financial losses every year. This presents a massive opportunity as most small independent retail stores and brands do not have the resources and technical capabilities to meaningfully participate in e-commerce marketplaces that the large brands and retailers do. Max Retail increases the potential buyer pool beyond storefront patrons browsing the sales rack for these independent retailers, driving immediate cash relief and payouts 4-8x higher than the standard quo of liquidation.
This funding round enables Max Retail to more than double its sellers, focusing on serving specialty retailers and brands that add vibrance to flourishing communities. And the company is on its way to becoming the largest supply chain that holds no inventory and will expand its support of global sales channels in need of drop ship inventory.
This funding round will also bring new innovations, including an AI-powered pricing and allocating engine that enables Max Retail to pay sellers the maximum value possible for their excess inventory, and SKU-level insights to help retailers understand inventory performance and market value of every item listed on Max Retail.
Max Retail’s 2K+ sellers nationwide praise the solution, launching the marketplace’s flywheel into full effect with 40% of the company’s inbound leads coming from customer-generated referrals. And Max Retail simultaneously solves pain points of marketplaces operating on zero inventory models, along with online retailers looking to supplement their stock with a wider variety of drop ship inventory.
In the past year, Max Retail has increased its seller payouts 3x with smaller sellers receiving about $12K per year and larger sellers making over $250K per year. And the company has also grown gross merchandise value (GMV) sold through the marketplace 4x year-over-year and is on the same trajectory for 2024, with 89% of active sellers having sold inventory every month of Q1.
KEY QUOTES:
“Independent retail shops are core pillars of their communities but face limited options for their excess inventory other than discounting far below cost, sending to consignment, or donating for a tax write-off. With this investment, we will continue to grow our sales channel network and expand this excess inventory solution to support the full product lifecycle, giving independent retailers and brands the tools they need to increase their inventory turns and maximize cash recuperation on unsold goods.”
– Melodie van der Baan, CEO & co-founder of Max Retail and former independent retailer
“Max Retail has built a highly automated product and does not manage inventory or logistics, allowing them to grow efficiently and expand into new geographies and categories. We’re excited to back Melodie and the Max Retail team, who bring a wealth of first-hand industry experience to solving these challenges.”
– Ian Loizeaux, founding partner at Nosara Capital
“Max Retail powers a more efficient market – getting the right inventory to the end customer at the right time, place and price. We’re thrilled to continue supporting the Max Retail team solving a big problem for retailers that also provides a valuable new inventory stream for online commerce sites. The more Max Retail grows, the more valuable a partner it becomes for its supplier network – and the less inventory sits on shelves or gets liquidated.”
– Anna Barber, partner at M13 and former retailer, who recently joined the company’s board of directors
“Max Retail has been a great partner, helping us source desirable merchandise and proactively respond to our rapidly changing seasonal assortment needs.”
– Lindsay Ferstandig, CEO of Yaysay, an AI-powered discovery-driven shopping app
“During a moment in which independent retailers face increasing pressures from the rising cost of rent and the likes of Amazon, Max Retail is providing much needed relief by unlocking untapped distribution channels with just a few clicks. We see Max Retail as a huge multiplier of our mission, making a meaningful impact on its customer base of 90% women-owned small businesses across all 50 states.”
– Jenny Abramson, founder and managing partner of Rethink Impact
