Max Retail Raises $15M Series A to Help Independent Retailers Participate in the Growing Ecommerce Wave

Max Retail, a business marketplace that assists independent retailers and brands to sell excess inventory, today announced a $15 million Series A financing round led by Nosara Capital with participation from Rethink Impact. The new round also includes continued support from M13, The Artemis Fund, and StandUp Ventures.

According to Max Retail, small retailers in the United States have an average of 22% excess stock which, left unsold, represents from $50,000 to $200,000 in annual financial losses. Applied 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.

“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, the CEO and co-founder of Max Retail. “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.”

The capabilities of Max Retail increases the potential buyer pool beyond storefront patrons browsing the sales rack, and will result in immediate cash relief and payouts that are 4x to 8x higher than current liquidation options available to small retailers.

Over the last twelve months, Max Retail has increased its seller payouts 3x with smaller sellers receiving approximately $12,000 per year and larger sellers making over $250,000 per year. The company has also grown gross merchandise value (GMV) sold through the marketplace at a 4x year-over-year rate and is on the same trajectory this year with 89% of active sellers having sold inventory every month during 2024’s first quarter.

“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, the founding partner of Nosara Capital.

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 has offices in London and New York City.

“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,” said Anna Barber, a partner at M13 and a member of Max Retail’s board of directors. “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.”

M13 is an early-stage venture capital firm – Seed and Series A – that invests in founders building disruptive software businesses. The firm’s portfolio includes more than 200 direct investments, with 25 exits made since its founding in 2016. M13 has offices in Los Angeles and New York City.

“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.”

Rethink Impact invests from $2 million to $10 million in female-led companies in the health, environmental sustainability, education, and economic empowerment sectors. The firm acts as a lead or co-investor in late seed to series C rounds in companies that have the capability to grow to $50 million to $100 million in the next five years.