Managing inventory is one of the most challenging parts of running a retail business. It’s not easy to predict exactly how popular each item will be.
That’s why retailers often offload their unsold clothing and products to other businesses. Some of these designs find their way into”off-price” stores like T.J. Maxx or Ross, known for their perpetually low prices.
Now a startup called Inturn has been trying to streamline the process, with its software that enables a two-sided marketplace. An estimated $500 million worth of products are currently available on Inturn’s platform, where they’re sold through controlled offerings.
And because the business has been able to attract marquee clients (they won’t name them publicly), investors are betting on rapid growth. Inturn is raising $22.5 million in Series B funding led by B Capital Group, Facebook co-founder Eduardo Saverin’s venture firm.
“Inturn is one of the fastest growing B2B marketplaces in the retail space and we are excited to support the company at its next stage of growth,” said Raj Ganguly, co-founder and partner, B Capital Group. “By providing a transparent and real-time view of inventory, brands and retailers are able to transact faster at a lower cost.”
Inturn CEO Ronen Lazar told TechCrunch that he estimates that it’s a $250 billion addressable space. He said the lack of technology in the industry resulted in “very slow and time-consuming and error-prone” processes.
It’s especially useful in industries like fashion, where “the value of the actual garment declines at a very rapid pace.” That’s lost revenue for businesses.
Inturn makes money from subscriptions and also takes a cut of processed transactions. “The ROI is kind of a no-brainer,” Lazar says of the value they provide their clients.
The startup was launched in 2013 and is based in New York.