What Happened
According to TechCrunch, retail technology startup Another has reportedly secured seed funding to address one of the retail industry's most persistent challenges: excess inventory management.
The announcement positions the Another startup as an emerging player in the AI-powered retail optimization space at a time when businesses are increasingly turning to technology to reduce waste and improve margins.
The retail technology funding 2026 round comes as retailers worldwide grapple with inventory challenges exacerbated by supply chain volatility, changing consumer behaviors, and the growing pressure to operate sustainably. Another's platform reportedly leverages artificial intelligence to help retailers identify, price, and sell overstock merchandise more efficiently than traditional clearance methods.
The Excess Inventory Problem
Excess inventory represents a massive financial burden for retailers globally. Industry estimates suggest that retailers carry billions of dollars in unsold merchandise annually, tying up capital and warehouse space while risking obsolescence.
Traditional solutions—deep discounts, outlet stores, or liquidation—often result in significant losses and can damage brand perception.
Another's approach reportedly differs by using machine learning retail algorithms to analyze multiple data points including seasonal trends, competitor pricing, customer demand patterns, and product characteristics. The platform then recommends optimal pricing strategies and identifies the most effective sales channels for moving excess stock while preserving brand value and maximizing recovery rates.
How Another's Platform Works
The startup's AI inventory optimization platform reportedly integrates with retailers' existing inventory management systems to provide real-time insights and recommendations. Key features include:
- Predictive Analytics: Machine learning models forecast which items are likely to become excess inventory before they accumulate
- Dynamic Pricing: AI-driven pricing recommendations that balance clearance speed with revenue optimization
- Channel Optimization: Identification of the best sales channels (online marketplaces, flash sale sites, B2B liquidators) for specific product categories
- Brand Protection: Algorithms that prevent brand dilution by controlling where and how discounted items appear
Market Opportunity and Timing
The timing of Another's funding round is significant. In 2026, retailers face multiple pressures that make excess inventory management more critical than ever.
E-commerce growth has accelerated the pace of fashion cycles, while sustainability concerns have made wasteful practices less acceptable to consumers and investors alike. Additionally, economic uncertainty has made efficient capital deployment a priority for retail executives.
The global retail analytics market, which includes inventory optimization solutions, is experiencing rapid growth as retailers invest in AI and machine learning technologies. Another's focused approach to excess inventory positions it within a specific, high-pain-point segment of this broader market.
Competitive Landscape
Another enters a market with both established players and emerging startups. Traditional inventory management software providers have added AI features, while specialized platforms focus on various aspects of overstock management.
However, the fragmented nature of the market and the persistent scale of the excess inventory problem suggest room for multiple solutions.
The company's approach reportedly focuses on using AI to balance financial recovery with brand protection—considerations that are particularly important to mid-market and premium retailers concerned about maintaining brand equity.
Investment and Growth Plans
The seed funding will reportedly fund product development, team expansion, and customer acquisition efforts.
While the TechCrunch article did not disclose the investors participating in the round, seed funding typically comes from a combination of angel investors, early-stage venture capital firms, and potentially strategic retail or technology investors.
The company's immediate priorities likely include refining its machine learning models with data from additional retail partners, expanding its integration capabilities with major retail technology platforms, and building out its sales and customer success teams to support growth.
Broader Industry Implications
Another's funding reflects broader trends in retail technology investment. As traditional retail margins compress due to e-commerce competition and rising operational costs, retailers are increasingly willing to invest in AI-powered solutions that promise measurable ROI.
Inventory optimization, with its direct impact on working capital and profitability, represents one of the most compelling use cases for retail AI.
The focus on excess inventory also aligns with growing emphasis on sustainable retail practices. By helping retailers sell through existing stock rather than destroying or deeply discounting it, platforms like Another support circular economy principles while improving financial outcomes—a combination that appeals to both CFOs and sustainability officers.
Challenges Ahead
Despite the clear market opportunity, Another faces several challenges common to retail technology startups. Integration with diverse retail systems can be complex and time-consuming.
Building trust with retail buyers requires demonstrating consistent results across different product categories and market conditions. Additionally, the company will need to prove that its AI models can adapt to rapidly changing retail environments and unexpected market disruptions.
Competition from both established enterprise software vendors and well-funded startups will also intensify as the retail AI market matures. Another's ability to maintain its technological edge while scaling operations will be critical to long-term success.
FAQ
What problem does Another solve for retailers?
Another reportedly addresses excess inventory management by using AI to help retailers identify overstock, optimize pricing strategies, and select the best sales channels for moving merchandise while protecting brand value and maximizing revenue recovery.
How much funding did Another raise?
According to TechCrunch, Another reportedly raised seed funding to develop its excess inventory management platform. The specific amount and investors were disclosed in the TechCrunch report.
How does Another's AI platform work?
The platform reportedly integrates with retailers' existing inventory systems and uses machine learning to analyze trends, demand patterns, and product characteristics. It then provides recommendations for pricing, timing, and sales channels to optimize excess inventory liquidation.
Why is excess inventory such a big problem for retailers?
Excess inventory ties up capital, occupies valuable warehouse space, risks obsolescence, and often results in significant losses when liquidated through traditional deep-discount methods. It represents billions of dollars in inefficiency across the retail industry annually.
What makes Another different from traditional inventory management solutions?
Another reportedly focuses specifically on excess inventory optimization using AI-first technology, with emphasis on balancing financial recovery with brand protection—a critical concern for mid-market and premium retailers.
Information Currency: This article contains information current as of January 2026. For the latest updates on Another's funding, product development, and market expansion, please refer to the official sources linked in the References section below.
References
Cover image: AI generated image by Google Imagen
