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.
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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. Brands retain control over how their discounted merchandise is priced and presented, while receiving sell-through data and customer insights that can inform future inventory decisions.
Offe said brands can recover cash in less than 30 days, although it did not provide average recovery rates or figures comparing returns with traditional liquidation channels. The company also said 65 percent of its brand partners use Offe as their exclusive off-price channel.
Gannon developed the concept after working in buying and merchandising at Rue La La, Macy's and Ban.do. At Macy's, she managed a $120 million business, according to the company, and later helped develop Ban.do's third-party buying operation.
"The satisfaction of a great deal never gets old. What's changed is how we shop and whose recommendations we trust," Gannon said. "We do the handpicking for you and let you in on the best finds."
Offe has also linked its business model to waste reduction, claiming to have diverted more than 200,000 pounds of merchandise from landfills. Asked how it calculated that figure, the company said it represents the total weight of products sold through its platform, including apparel and home goods. That calculation does not establish whether the merchandise would otherwise have been discarded.
Waverly Middleton, an investor at Slauson & Co., sees an opportunity in off-price retail's limited online penetration, with Offe Market positioned to reach younger shoppers while offering brands another outlet for excess inventory. At TJX Cos., online sales through TJ Maxx, Marshalls and Sierra accounted for approximately 2 percent of the Marmaxx segment's net sales in the second quarter of fiscal 2027, according to the company's quarterly filing.
Offe has also expanded beyond apparel into home goods and beauty, carrying products from brands including Nopalera, P.F. Candle Co., Papier and Chillhouse Nails .
Alongside its online business, Offe operates a store in Los Angeles' Echo Park neighborhood that doubles as a content studio for social media and live commerce. The location also hosts sample sales and community events, including a Galentine's Day event that the company said attracted more than 400 attendees.
Offe said it already uses AI for demand forecasting and pricing, alongside an inventory intelligence platform that tracks sales and demand. The new funding will support more sophisticated pricing tools and personalized product recommendations as the company works to expand its online off-price business.
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