Sotira: Breaking Retail's $800 Billion Surplus Problem

The retail industry faces a $800 billion challenge that rarely makes headlines: excess inventory. While most innovation focuses on getting products to consumers faster, the backend of retail – specifically, what happens when products don’t sell – has remained stubbornly inefficient. That’s why we’re investing in Sotira, a company that’s bringing long-overdue innovation to retail surplus management.

Founded by UC Berkeley graduates Amrita Bhasin and Gary Kwong, Sotira has built a tech-enabled platform that streamlines how retailers handle excess inventory. The platform serves as an intelligent marketplace, connecting retailers with qualified buyers through a modern, digital interface that replaces traditionally manual processes.

The numbers make a compelling case. One of their partners, the biggest instant commerce company in the U.S., reduced shrink by over 20%, netting 5 figures in monthly shrink reduction vs. previous liquidators because of Sotira. These results demonstrate how software leveraging AI can transform surplus management from a cost center into a revenue driver.

What sets Sotira apart is their technology stack. While the interface is intuitive enough for anyone familiar with e-commerce to use, the backend employs sophisticated machine learning algorithms that optimize matching, pricing and compliance. This combination of user-friendly design and advanced technology enables Sotira to create more efficient transactions for both sellers and buyers.

The timing is good too. As retailers face mounting pressure to improve operational efficiency and meet sustainability goals, the need for better surplus management solutions has become critical. Sotira’s platform addresses both challenges simultaneously – improving financial outcomes while reducing waste.

Our investment decision was driven by three key factors: the size of the problem ($800 billion annually), the effectiveness of Sotira’s solution (demonstrated by their early results), and the team’s unique combination of retail expertise and technical capability. Under Amrita’s leadership, the team brings the right mix of industry knowledge and technical innovation needed to tackle this complex challenge.

Looking ahead, we see Sotira becoming an essential part of retail operations. Their platform isn’t just solving an immediate problem – it’s laying the groundwork for how surplus inventory should be managed in the digital age. As the retail industry continues to evolve, solutions like Sotira will be crucial for maintaining efficient, sustainable operations.

We’re backing Sotira because they’re bringing practical innovation to a significant industry challenge. For more information check out the Techcrunch article about how Sotira is transforming retail surplus management, or visit www.sotira.co.

Visit Sotira at https://www.sotira.co.