South Bend startup’s software makes reselling easy for companies big and small
Leadership is not something you arrive at one day and say, “I’ve made it.” It is an ongoing journey of self-awareness and intentional practice.
In three short years, Rod Baradaran’s business idea for returning merchandise has hit the ground running. Since winning the 2023 Crossroads Collegiate Pitch Competition from The Mill, Bloomington’s hub for coworking and entrepreneurship, rScan has been on a fast-paced trajectory, said Baradaran, CEO and co-founder of the South Bend-based company.
At the time, he was a graduate student in the MBA program at Indiana University Kelley School of Business. The prized pitch was for Baradaran’s rScan app software, which simplifies the process of selling returned merchandise online.
Baradaran grew up in South Bend and was living in Massachusetts when his childhood friend Ryan Ryker told him about the environmental issues caused by discarded retail returns. Ryker had been working for a national apparel supply company.
“Ryan and I continued talking regularly even after I moved away for college,” Baradaran said. “I decided to move back to South Bend, funded our initial startup costs, and started the business alongside Julian Marquez and Michael Altenburger, who provided the expertise necessary to launch and grow the company.”
Marquez’s background is in manufacturing and logistics; Altenburger in marketing and project management.
“Reselling returned merchandise is a tremendous untapped market,” Baradaran said. “Statistics show that retailers accumulate pallets of returns and sell 75% of it back for pennies on the dollar. Our goal was to fill a critical need, make a difference in easily reselling this merchandise, and being ecologically friendly by saving the landfills of so much waste.”
The rScan founders have established strong relationships with major retailers such as Walmart, Home Depot, eBay, Spotify and Amazon, to name a few. The rScan app helps them optimize inventory management, pricing and logistics. The technology scans UPC codes, then uses a reverse lookup algorithm to gather detailed product information.
To fine tune and test the rScan app, Baradaran participated in gBETA Indiana’s Industry 4.0 acceleration program in 2024. Davide Dantonio, the director of gBETA’s – gener8or, led the program.
“Davide’s mentorship and strategic guidance have been instrumental in our company’s significant achievements,” Baradaran said. “With his investor connections, rScan has refined its business model, expanded its technology, and built a sustainable growth strategy.
“Davide’s expertise in smart manufacturing and sustainability has been pivotal in refining our technological solutions and expanding market reach.”
Dantonio said that, from the beginning of the process, he knew Baradaran was one to watch. “I really saw a star factor in Rod, and beyond working with him, he has become a friend,” Dantonio said.
At the beginning of the gBETA program, rScan hired four full-time and two part-time employees. The company expects to create 152 jobs over the next four years. rScan also has moved to a larger space — from 15,000 square feet to 53,000 square feet. The space was formerly the South Bend Chocolate Co.’s production facility.
“Our new South Bend location is in the same building we began but now occupies the largest suite,” Baradaran said.
Baradaran since has changed roles to COO and relocated to Indianapolis.
“We plan to hire most of our employees in South Bend, although we will establish a satellite office later this year in Indianapolis to focus on expanding our tech and finance teams,” Baradaran said.
Ryker, who is CEO, will stay in South Bend where most of their employees are.
“That’s where we check returns, hold inventory, and run our own resale lab of selling returned products directly to the public on eBay, Amazon and other sites.”
The success and growth of rScan also comes from the member partners who start their own entrepreneurial ecommerce resell businesses of returned merchandise. Prospective partners are guided through a two-week program consisting of educational videos and training about the rScan app.
“With the use of rScan, our partners purchase the inventory they choose from several categories, such as home improvement, toys, electronics and appliances, depending on their interests or focus,” Baradaran said, “and through our app, it is shipped directly to their location.”
While member partners are not franchisees, rScan does offer “a huge opportunity to encourage and establish independent entrepreneur businesses,” he said. “They stock their own merchandise, sell it on their own online store for a profit and ship it.”
The model is paying off. Earlier this year, TechPoint, the industry-led growth initiative for Indiana’s digital innovation economy, named rScan the Startup of the Year during its 2025 Mira Awards gala. rScan was recognized for addressing inefficiencies and sustainability challenges associated with product returns.
A report from the National Retail Federation and Happy Returns, a UPS company, noted that, in 2024, total returns were projected to reach $890 billion.
“We are grateful for the high profile rScan has received,” Baradaran said, “and hope to make a lasting impact on both the economy and sustainability efforts in Indiana.”•
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