US startup Max Retail raises $15 million Series A to help independent retailers and brands sell excess inventory

Max Retail, a marketplace via which independent retailers and brands can sell excess inventory, has announced a $15 million Series A round led by Nosara Capital, with participation from Rethink Impact.

The round also includes continued support from VC M13, The Artemis Fund, and StandUp Ventures.

“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,” says Melodie van der Baan, CEO and 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 maximise cash recuperation on unsold goods.”

The funding will enable Max Retail to more than double its sellers, focusing on serving specialty retailers and brands that add vibrance to flourishing communities.

The company claims that it is on its way to becoming the largest supply chain that holds no inventory and says it 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,” says 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,” says Anna Barber, Partner at M13 and former retailer, who recently joined the company’s board of directors.

“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.”

"Max Retail has been a great partner, helping us source desirable merchandise and proactively respond to our rapidly changing seasonal assortment needs," says Lindsay Ferstandig, CEO at 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,” says Jenny Abramson, Founder and Managing Partner at 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.”