Offe Market has raised $3 million in a seed round to expand its technology-driven off-price shopping platform.
The Los Angeles-based marketplace’s latest round was led by Slauson & Co., with participation from InvestTN and Baukunst, bringing its total funding to $4.3 million. Baukunst previously led the company’s pre-seed round.
Founded by Rachel Gannon, who serves as chief executive officer, Offe Market sells excess inventory from fashion, beauty and lifestyle brands at discounts ranging from 30 to 80 percent off retail prices. The company operates online and has a store in L.A.’s Echo Park neighborhood, which also serves as an event space and content studio.
Offe Market has grown 2.5 times year-over-year across revenue, shopper count and order volume, according to the company, and has worked with more than 200 brands, including Harper Wilde, Obey, Wrangler, Rachel Antonoff and Dolce Vita.
The funding comes as the company looks to grow its presence in the online off-price retail market.
“Off-price is a multibillion-dollar industry, yet some of its biggest players still generate less than 2 percent of sales online,” said Waverly Middleton, an investor at Slauson & Co., in a statement. “With Offe Market, we see an incredible opportunity to reach a new generation of shoppers while giving brands a trusted channel to move excess inventory.”
According to Gannon, demand has been particularly strong for accessories and versatile wardrobe staples.
“Baggu consistently sells out, particularly its nylon crescent and bowler bags,” Gannon said. “We’re also seeing strong demand for pieces that balance everyday versatility with personality, from Dolce Vita cowboy boots to design-forward home objects from Areaware.”
Organic Basics, Harper Wilde, Lisa Says Gah and & Other Stories are also among the marketplace’s popular labels. The assortment extends beyond apparel and accessories to home goods, candles and skin care from brands including P.F. Candle Co., Nopalera and Chillhouse Nails.
Unlike traditional off-price retailers like Nordstrom Rack and TJ Maxx, Offe Market aims to give brands greater control over pricing, merchandising and customer relationships.
“Every brand has excess inventory. The challenge is moving it without compromising brand value,” Gannon said. “Traditional discount retailers are effective at clearing product, but brands often give up control over pricing, presentation, and the customer relationship.”
Currently, 65 percent of Offe Market’s brand partners use the platform as their exclusive off-price channel. The company is also attracting Millennial and Gen Z shoppers, with 60 percent of its customers coming to Offe Market for brand discovery, Gannon said.
The new funding will support the expansion of its inventory intelligence platform, including AI-powered demand forecasting, pricing optimization and dynamic merchandising. Offe Market also plans to develop personalized product recommendations and live and video shopping experiences.
“We’re investing in two key areas, smarter inventory management for brands and a more personalized, engaging shopping experience for consumers,” Gannon said.