Max Retail Raises $15M Series A to Help Independent Retailers Participate in the Growing Ecommerce Wave
WEST PALM BEACH, Fla., May 22, 2024–(BUSINESS WIRE)—Max Retail, a marketplace that makes it easy for independent retailers and brands to sell excess inventory, today announced a $15 million Series A round led by Nosara Capital, a London-based online marketplaces VC firm, with participation from Rethink Impact, the largest US-based impact venture capital firm that invests in female leaders using technology. The round also includes continued support from LA-based VC M13, Houston-based The Artemis Fund, and Canadian-based StandUp Ventures, who share a focus on enabling technologies that power commerce and money.
Small retailers in the US sit on an average of 22% excess stock which, left unsold, represents anywhere from ~$50K-$200K in financial losses each year for these sellers. Globally, this is a $600 billion opportunity to solve. Most small independent retail stores and brands do not have the resources and technical capabilities to meaningfully participate in ecommerce marketplaces that large brands and retailers do. Max Retail exponentially increases the potential buyer pool beyond storefront patrons browsing the sales rack for these independent retailers, resulting in immediate cash relief and payouts 4-8x higher than the standard quo of liquidation.
“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,” said Melodie van der Baan, CEO & co-founder of Max Retail and former independent retailer. “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.”
This funding enables Max Retail to more than double its sellers, focusing on serving specialty retailers and brands that add vibrance to flourishing communities. 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.
“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,” said Ian Loizeaux, founding partner at Nosara Capital.
The funding 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 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.” said Anna Barber, partner at M13 and former retailer, who recently joined the company’s board of directors.
Max Retail’s 2,000+ 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 today. 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.
“Max Retail has been a great partner, helping us source desirable merchandise and proactively respond to our rapidly changing seasonal assortment needs,” said Lindsay Ferstandig, CEO of Yaysay, an AI-powered discovery-driven shopping app.
Over the last twelve months, Max Retail has increased its seller payouts 3x with smaller sellers receiving ~$12K per year and larger sellers making over $250K per year. 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.
“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,” said Jenny Abramson, founder and managing partner of Rethink Impact. “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.”
To learn more about Max Retail, visit: https://www.maxretail.com/.
About Max Retail
Max Retail expands the reach of retailers’ and brands’ unsold inventory far past their storefronts through its network of online marketplaces partners where end consumers can easily discover and purchase this inventory. The company enables small retail businesses to become fulfillment partners of some of the biggest names in online retail today, reaching over 400 million consumers. Max Retail is the only solution of its kind for small businesses to get paid the maximum value for excess inventory by easily and frictionlessly connecting the supply of unsold inventory to a global network of demand. For more information, visit: https://www.maxretail.com/.
About the Investors
Nosara Capital is a venture capital firm that specializes in online marketplaces. The firm invests globally in category-defining businesses from Series A through the growth stages. Nosara was founded in 2017 and is based in London and New York. For more information, visit https://www.nosaracapital.com/
M13 is an early-stage (seed and Series A) venture capital firm that invests in visionary founders building disruptive software businesses. Established in 2016 with offices in Los Angeles and New York, the firm is a full-stack partner that brings its deep bench of full-time operators to help founders outperform and build category-defining companies. M13’s portfolio includes more than 200 direct investments, with 25 exits to date. For more information, please visit www.m13.co.
Rethink Impact is the largest US-based impact venture capital firm that invests in female leaders using technology to solve the world’s biggest problems. Rethink Impact believes that the next generation of extraordinary companies (in health, environmental sustainability, education, and economic empowerment) will find success through their relentless pursuit of mission, for the benefit of all communities. For more information visit rethinkimpact.com or @RethinkImpact on X.
The Artemis Fund leads rounds for diverse tech founders with wild ambition in fintech, commerce enablement, and care building the economy of the future. Named after the goddess of the hunt and champion of women and wild things, they believe technology has the opportunity to create prosperity for all, but it’s not possible without diverse perspectives. For more information, visit https://www.theartemisfund.com/.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240522195322/en/
Contacts
Lizzy Harris PR for Max Retail
MaxRetail@colabcomms.co
