This funding helps Loop Returns' valuation hit $340M. Here are the top-line bullets you need to know.
Loop Returns, a software company that helps companies handle online returns, has raised $65M in a Series B funding round. This round drew participation from CRV, FirstMark Capital, and Ridge Ventures, among others.
HOW’S THE COMPANY PERFORMING?
- Ohio-based Loop Returns is a returns platform that works with brands on the Shopify platform.
- The company states that about $400M has been retained by brands using their platform.
- Loop Returns has 100 employees and around 700 customers that include Allbirds, Chubbies, Figs, Skims, and Brooklinen, among others.
Source: Loop Returns
WHY DOES THE MARKET MATTER?
- The pandemic surge has led to a boost in e-commerce, as businesses shift online, and that has led to twice the rate of returns in 2020. As per NRF & Appriss Retail, the US online sales for 2020 were $565B, out of which total returns accounted to approximately $102B in merchandise at 18.1%.
- The National Retail Foundation states that online returns have seen a 2x increase in 2019-2020. The environmental impact in the returns space, largely due to non-reusable returned goods, has warranted a streamlining approach, as online retailers look at reducing incremental costs.
- There have been a lot of deals in the returns space recently, with a $300M Affirm acquisition of Returnly and Paypal’s acquisition of Happy Returns for an undisclosed amount.