Wholesale Marketplace Abound Raises $22.9M in Funding

Abound Secures $22.9 Million in Initial Institutional Funding

Abound, a digital marketplace designed to connect independent retailers with emerging brands, has announced the completion of a $22.9 million funding round – its first at the institutional level.

Company Origins and Mission

Founded by Bill Shope, alongside Niklas de la Motte and Drew Sfugaras, Abound addresses a key challenge for small retailers: the constant search for innovative products. Traditionally, this necessitates attendance at numerous trade shows annually.

Abound provides an alternative, offering an online platform for product discovery at wholesale prices, with potential discounts reaching up to 50%. Retailers benefit from free returns and, in certain instances, Net 60 payment terms, allowing a 60-day period to remit invoice payments.

Evolution of the Platform

Initially conceived as a networking hub for manufacturer’s representatives and retailers, the company observed limitations within this model. Retailers increasingly expressed a desire for direct purchasing from brands.

Responding to this demand, Abound shifted its focus to facilitate direct transactions. The platform launched in October 2019, following a recruitment phase of 50 brands offered complimentary consulting services in exchange for their participation.

Impact of the Pandemic

The retail landscape underwent significant disruption in the months following the platform’s launch, due to the pandemic and associated store closures and social distancing protocols.

Abound experienced a temporary decline in sales, but quickly recovered and saw sustained growth as traditional trade shows were widely canceled. This shift accelerated the adoption of online wholesale solutions.

Supporting Both Online and Brick-and-Mortar Retailers

While supporting e-commerce businesses, Abound also recognized the resilience of physical stores that successfully adopted a hybrid model. These retailers integrated online sales channels, such as websites and curbside pickup, alongside their physical locations.

Growth and Expansion

Since the beginning of 2020, Abound has significantly expanded its product catalog, adding 180,000 new items across categories including baby products, beauty, food and beverage, home goods, and jewelry.

Concurrently, the platform has witnessed a 20-fold increase in monthly sales volume, demonstrating substantial market traction.

The Future of Retail

Shope believes a return to pre-pandemic buying practices is unlikely. Independent retailers face ongoing competition from large corporations like Amazon and Walmart.

Success hinges on offering unique value propositions, such as discovering new brands or supporting charitable causes, to attract customers and differentiate themselves. These compelling narratives are crucial for driving foot traffic and fostering customer loyalty.

Investment Details

The funding round was spearheaded by Left Lane Capital, with contributions from RiverPark Ventures, All Iron Ventures, and Red Antler, a branding agency.

These funds will be allocated to team expansion, international market entry, and continued product development.

Harley Miller, Managing Partner at Left Lane, released a statement regarding the investment.