Brazilian B2B commerce platform BackChannel raised $4.8 million in a seed round led by Sunna Ventures. Also participating were Accion Ventures, Igna VC, Savia Ventures, Positive Ventures, SC Latam Innovation Fund, Preface Ventures, Norte Ventures and Morro Ventures.
BackChannel’s AI-based platform connects surplus apparel and footwear inventory from major brands to small and medium-sized Brazilian merchants, which then resell the goods.
“Excess inventory is hard to offload because suppliers are wary of cannibalizing their existing sales channels or damaging their brand equity, so inventory often sits in warehouses for years,” Accion Ventures’ Sebastian Molina Gasman told ImpactAlpha. “At the same time, small businesses that are eager to access high-quality goods are often too small to work directly with large manufacturers.”
The funding will support the rollout of a credit feature allowing merchants to finance orders directly through the platform.
Circular economy
Brazil generates roughly 170,000 tons of textile waste annually, with 80% ending up in landfills, according to the Brazilian Association of Waste and Environment.
BackChannel routes that surplus instead into the hands of smaller retailers that “face difficulties accessing products from high-quality brands at competitive prices,” said Accion Ventures’ Amee Parbhoo. “BackChannel seeks to improve the competitiveness and resilience of small retailers by incorporating them into the circular economy.”
The seed round follows a $3.2 million pre-seed investment in October 2024 led by Cathay Latam.