B-Stock, the business to business marketplace for returned, excess and other liquidation stock has received $65 million in funding from growth equity firm Spectrum Equity, the first time PE funding has been pumped into the reverse supply chain and liquidation sector.
The investment will help expand its technology-based liquidation solution. “As more retailers and manufacturers increasingly focus on reverse logistics and liquidation of excess inventory, the company is well positioned for continued growth, and we are eager to partner with them to help in that process,” said Pete Jensen, managing director of Spectrum Equity.
“As e-commerce continues to grow and return rates continue to rise, the cost associated with processing returns is becoming a major pain point,” said Howard Rosenberg, CEO and co-founder of B-Stock. He said clients were achieving 30%-80% higher pricing on the inventory sold through the B-Stock platform.
Since launching its first liquidation marketplace for a Fortune 500 retailer in 2009, B-Stock has sold billions of dollars worth of inventory, achieving a compound annual growth rate of over 100%. This year, across its network of marketplaces, the company is on track to sell over 70 million returned or excess items to its business buyers located in 130 countries.