InTurn, the B2B platform that automates how retail buyers procure excess inventory from brands, has completed a $9.7 million Series-A financing round.
The funds will be used to expand the company’s sales and client services teams to support growth of its network of brands and retailers. The investment brings InTurn’s total funding to $13.6 million.
The financing round was led by Novel TMT Ventures, founded by Silas Chou’s two sons, Luis and Bruno Chou, and Andrew Fine, and included previous investors Forerunner Ventures, Lerer Hippeau Ventures and T5 Capital.
New investors include Benvolio Group, the investment arm of Lew Frankfort, chairman emeritus of Coach, and his family; Shuco LLC, an investment arm of Stanley S. Shuman; Khajak Keledjian, cofounder of Intermix; Bam Ventures, founded by Brian Lee, cofounder of Honest Company and serial angel investor; and Fabrice Grinda.
Also, Andrew Fine, a partner at Novel, is now on InTurn’s board of directors.
“This is our most significant early stage investment ever. InTurn’s solution to improving inventory liquidity and recovery is the biggest opportunity we have identified in the past decade,” Fine said. “We recognized the scope of this opportunity, given our early investment through Beanstalk Ventures, which we cofounded with Ken Seiff.”
Ronen Lazar, InTurn’s ceo and cofounder, said those investing in InTurn or serving as advisers have “deep off-price retail, finance and technology expertise.” He said InTurn is growing ahead of expectations.
InTurn also formed an advisory board including Michael Newman, former vice chairman and chief operating officer at Ralph Lauren; Stephen Milstein, cofounder of Burlington Coat Factory; Alexandra Wilkis Wilson, cofounder of Gilt Groupe; David Margolis, founder of the Winners division of The TJX Cos. Inc.; Lee Helman, managing director of Financo, and Barry Gluck, former executive vice president of merchandising, marketing, store planning and allocation, Ross Stores.
InTurn eliminates the manual labor involved in creating spreadsheets; sorts by classification; shows sizing and color information; indicates quantities, suggested retail prices, wholesale prices, new asking prices and, in effect, creates “private, curated showrooms for retailers” that give clear reads on the offer.
InTurn lists purchasing rules, such as whether you can buy all of the inventory or part of it, and for how long the offer stands. There are also geographic restrictions on where the product can sell, and calendar restrictions on when to start and stop selling the products. In addition, there’s a margin analyzer that calculates purchase prices to get the desired margins. Frequently, buyers are writing orders without product pictures, descriptions, UPCs, color codes and country-of-origin information, and InTurn is designed to provide all that. It’s cloud-based (nothing needs to be installed), it’s mobile ready, and it works on any kind of device.
According to InTurn officials, each year an estimated $250 billion of off-price inventory is sold globally. InTurn’s debut last year was timely, considering the ongoing proliferation outlet and off-price stores and Web sites.