FOUNDER SPOTLIGHT

Justin Donovan

Reprally
New York, NY

Justin is the co-founder & CEO of RepRally which aims to eliminate the barriers to wholesale distribution and broaden consumer access to high-quality products.

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August 9, 2024

Eliminating the Barriers in Wholesale Distribution

RepRally is a wholesale platform that eliminates the barriers between consumer brands and local retailers to facilitate distribution and broaden consumer access to high-quality products. The Company was founded in 2023 by Justin Donovan & Daryn Lam and has raised from Infinity Ventures, Clocktower Ventures, Indicator Ventures, and others.

Who is using RepRally and what are the benefits they are getting?

We serve three customer groups: brands, sales reps, and retailers. Brands can list their products in our catalog and offer direct commissions to our reps. Sales reps can sell any of our products and earn commissions directly from partnering brands, significantly boosting their income. Retailers benefit from a diverse selection of products, favorable terms, and often better prices. This variety helps them stay competitive and better serve their customers.

Why is RepRally different from the other players in the wholesale distribution space?

RepRally differs from traditional distributors because we don't have overhead, logistics, or geographic constraints. We just build software. Like Uber, we pass the value from our streamlined model to the sales reps who sell with us. This allows reps to earn outsized commissions and often start their own distribution practices.

Compared to wholesale websites like Faire, the difference is clear. Store owners don’t buy from websites; they buy from sales reps. That’s why you see Pepsi, Frito-Lay, and Redbull trucks on the road. Every attempt by distributors or manufacturers to move to direct purchasing has failed. Instead of trying to change this behavior, we built our platform with store owners in mind. Our sales reps use our software and network of brands to better serve their accounts.

What has been the biggest surprise or learning to date that you didn't anticipate?

The biggest surprise has been how successful our rep users have become. We started with veteran sales reps who transitioned to our platform and doubled or tripled their previous income. What really shocked us was how many people with no experience thrived. Our software has made it easy for anyone to sell.

For example, a high school teacher used our software to make extra money over the summer and plans to do it year-round. A single mother of two, juggling two part-time jobs, earned enough in her first month to quit both jobs and is now planning to buy her first home. Stories like these motivate us every day.

How have your investors been the most helpful?

Our investors have been incredibly helpful. They’ve made valuable introductions to brands, helping us expand our network and grow our platform. Additionally, their financial savvy has been crucial, as we not only operate as a platform but also process a high volume of transactions as a fintech. The advice and connections we've received from our investors have given us the leverage to continue building and scaling our platform effectively.

What's in store for the future of RepRally and the wholesale distribution more broadly?

We operate with a very clear mandate: to win this market. Our core TAM is immense, with independent retailers in the U.S. generating over $1 trillion in annual sales. We're poised to consolidate this volume as we continue scaling our three-pronged network. We’re building a network that is self-reinforcing, and we will ultimately grow this market as we continue building advanced tools for our customers.

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