Did you know that 20% to 30% of all inventory in the U.S. ends up as surplus, with a lot of it getting tossed into landfills? A new startup called Sotira is stepping in to tackle this growing issue. By using AI, the company helps businesses sell off extra stock like groceries, health products, and cosmetics, turning potential waste into revenue.

Sotira just announced a $2 million pre-seed funding round to help spread its mission nationwide, with a focus on the Midwest and Southeast. Founded by Amrita Bhasin and Gary Kwong, the duo met at UC Berkeley and bonded over their passion for ecommerce and logistics. After running a successful liquidation business together, they spotted a massive opportunity in the surplus market.

“We realized this is a multi-billion-dollar industry that’s still super outdated,” Bhasin explained. “Many companies are still using pen and paper—they don’t even know what AI is. That’s when we knew we had to start Sotira.”

Here’s how it works: Suppliers sign up and connect their inventory to Sotira’s platform. The AI then matches the items with verified buyers, like discount grocery stores, who pick up the goods directly. This whole process, which used to take weeks of manual negotiation, now happens in just a few days.

But it’s not just about helping businesses save money. Sotira also makes premium products more affordable for people in rural or low-income areas. For example, instead of ending up in a landfill, surplus drinks from big brands can now make their way to discount stores in areas where shoppers might not have access to pricier retailers.

Looking ahead, Sotira plans to expand beyond food and cosmetics into the apparel industry, helping brands move excess clothing and shoes. With backing from investors like Unusual Ventures and Night Capital, Sotira is poised to grow its impact even further.

This innovative approach is not only good for business—it’s a win for the planet, too. By keeping surplus inventory out of landfills, Sotira is proving that sustainability can go hand-in-hand with profitability.