Madrona Backs Buywander’s $21M Series A for Retail Returns Auctions
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Buywander, which runs an auction marketplace for returned and overstocked retail goods, has raised $21 million to take the model into more US markets. Madrona Venture Group and Inspired Capital led the Series A. Total funding now stands at $28 million.
Earlier backers Triple Impact Capital, Silence Ventures, Data Tech Fund, and Animal Capital had previously invested, along with a group of angels. The company is headquartered in Seattle, having moved there from Spokane to draw on the region’s tech and retail talent.
Jordan Allen and Brock Kowalchuk founded the Washington company in 2023. Its marketplace connects shoppers with returned and excess inventory from retailers including Amazon, Target, Walmart, and Home Depot. Items sell through timed online auctions with bidding that starts at $1.
What makes the model unusual is what happens after the auction closes. Winning bidders collect their purchases from a local Buywander warehouse instead of having them shipped, which removes last-mile delivery from the equation. Retailers get an outlet for merchandise that has already come back or needs clearing, and consumers get branded goods at prices set by bidding. Every purchase carries a seven-day return policy.
The new money will fund a faster national rollout, further work on the technology platform, and additions to the leadership team. Buywander operates eight locations today, including recently opened sites in Denver and Chicago, and Minneapolis is next on the list.
Growth here is not purely digital. Each new city needs its own warehouse operation, along with the reverse logistics and retailer relationships that keep inventory flowing. Auctions happen online, but fulfillment rests on a physical network where goods are processed, stored, and picked up by the winners.
The management team has grown ahead of that expansion. Laura Sasser has joined as chief operating officer, Mani Sundaram as chief product officer, and Daniel Kiepfer as vice president of data and AI. Abu Marcose is now senior director of warehouse technology and Roger Ling director of marketing. They join Chief Technology Officer Srinivas Paluri, Vice President of Strategic Operations Brent Hendricks, Vice President of Merchandising Rett Clevenger, and Chief Architect Ark Rozycki.
The board has changed too. Madrona Managing Director Scott Jacobson, Inspired Capital founder and Managing Partner Alexa von Tobel, and Greg Greeley have joined as directors, with Charlotte Ross coming on as a board observer.
The investment thesis rests on two trends: the rising volume of returned and excess merchandise coming out of large retailers, and consumers’ continued focus on affordability. Buywander sits between those two needs with a local auction marketplace rather than a traditional liquidation channel.
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