Sotira, a startup tackling the significant problem of surplus inventory in the US, has raised $2 million in pre-seed funding to fuel its mission of helping companies offload and monetize their excess goods. According to estimates, 20% to 30% of all inventory in the US is surplus, with much of it ending up in landfills. Sotira's innovative solution uses artificial intelligence to connect brands with vetted suppliers and buyers, ensuring that surplus inventory is matched with those who need it most.

The startup, founded by CEO Amrita Bhasin and CTO Gary Kwong, has already made significant strides in the ecommerce and logistics space. The duo met at UC Berkeley and bonded over their shared interest in the industry. Before starting Sotira, they ran their own companies focused on selling previously owned, new, or used products, and even operated a liquidation business together to gain a deeper understanding of the space.

Bhasin and Kwong were struck by the massive market opportunity for monetizing overstock, which they estimate to be a multi-billion-dollar market. They were also surprised by the manual nature of the industry, with many players still relying on pen and paper. This realization sparked the idea for Sotira, which aims to bring efficiency and innovation to the space using AI.

Sotira's platform helps to offload products that are nearing their expiration date, facing storage capacity issues, or have been over-ordered. Vetted suppliers can sign up for the platform, link their storage capacity or inventory, and Sotira's AI matches the products with buyers who are willing to purchase them. The startup automates compliance, facilitates transactions and logistics, and ensures that suppliers get paid out upon pickups.

In contrast to the traditional, manual process of identifying surplus stock and negotiating prices with liquidators, Sotira's platform streamlines the process, allowing suppliers to clear inventory much faster. The startup generates revenue through a monthly fee for access to its platform and a percentage of revenue from each transaction.

Bhasin emphasized that Sotira's solution not only benefits suppliers and buyers but also opens up affordable access to premium products for consumers who may not have been able to access them otherwise. For instance, the startup works with CPG beverage brands that offload their excess inventory to discount grocery stores, providing value to consumers in rural areas who rely on these stores.

With the new funding, Sotira plans to expand its operations nationally, specifically targeting the Midwest and Southeast regions. The startup is also looking to move beyond its current focus on grocery, health, and wellness, and cosmetics goods, with plans to enter the apparel space in the future. Brands have already expressed interest in using Sotira's platform to offload excess clothing and shoes.

The pre-seed funding round included participation from Unusual Ventures, Night Capital, K5 Global, Ritual Capital, and others. As Sotira continues to grow and expand its operations, it is likely to make a significant impact on the surplus inventory crisis in the US, while also providing a valuable service to suppliers, buyers, and consumers alike.