Offe Market has raised $3 million in seed funding to expand its digital off-price marketplace, betting that brands want more control over how excess inventory is sold and shoppers want an alternative to traditional discount retailers.

The Los Angeles-based company said Wednesday that Slauson & Co. led the round, with participation from InvestTN and Baukunst, bringing its total funding to $4.3 million. The new capital will support further development of its commerce intelligence platform, including more sophisticated AI-powered pricing, personalized product recommendations and live commerce.

Founded by retail executive Rachel Gannon, Offe sells excess merchandise from fashion, beauty and lifestyle brands directly to consumers at discounts ranging from 30 percent to 80 percent off retail prices. Its assortment includes products from Wrangler, Obey, Rachel Antonoff, Dolce Vita and Harper Wilde.

Offe said revenue, shopper count and order volume each increased 2.5 times year over year, although it did not disclose underlying sales figures or the comparison period. The company has worked with more than 200 brands.

Offe told Sourcing Journal that it works with brands through a combination of dropshipping, consignment and direct purchasing, depending on their inventory needs. Brands can fulfill orders themselves or have Offe handle distribution, while the company reserves outright purchases for merchandise with demonstrated demand.

This arrangement allows brands to sell anything from small quantities to bulk inventory, according to Offe. Its software connects to participating brands’ inventory systems—updating product listings, prices and availability in real time.

Source link