Offe Market Raises $3 Million to Expand Its Discount Clothing Platform

Offe Market, a Los Angeles platform that sells surplus clothing at steep discounts, has raised $3 million in a seed round to expand its business, according to WWD, published on 28 October 2026. A seed round is an early funding round, usually the first large sum a young company raises from investors.

Slauson & Co. led the round. InvestTN and Baukunst also took part. Baukunst had already led Offe Market's earlier pre-seed round, the smallest and first step in raising outside money. With the new funding, the company's total funding has reached $4.3 million.

Offe Market works in what the trade calls off-price retail, selling goods well below the price a shop first set for them. The company sells excess inventory, meaning stock that brands and retailers have not sold at full price. Its discounts range from 30 to 80 percent off retail prices, the sticker price a shop sets.

Shoppers can buy online or at the company's store in Echo Park, a neighbourhood in Los Angeles. The shop also works as an event space and a content studio, where the company films and hosts gatherings.

Offe Market says it has worked with more than 200 brands. Its partners include Harper Wilde, Obey, Wrangler, Rachel Antonoff and Dolce Vita. According to the company, 65 percent of those brand partners use the platform as their exclusive off-price channel, meaning it is the only discount outlet they use for surplus stock.

The company also reports growth. Across revenue, shopper count and order volume, it grew 2.5 times compared with the year before, the company said.

Offe Market plans to put the new money into what it calls an inventory intelligence platform. That work includes AI-powered demand forecasting, which predicts how many units of a product will sell, along with pricing optimisation and dynamic merchandising, the practice of changing which products appear and at what price.

The company was founded by Rachel Gannon, who serves as chief executive. Before starting Offe Market, Gannon worked as a fashion buyer, the person who chooses which items a shop stocks. Modern Retail reported on her background in 2025.

For brands, the question of what happens to unsold stock is a long-running one. Each season, clothing that does not sell at full price has to go somewhere, whether to discount sites, outlet stores or other buyers. Offe Market's funding round shows investors are backing one route for that stock.