Loop Returns locks in $65 million Series B led by CRV

loop returnA software company looking to handle the costly and inefficient process of retail/e-commerce returns has announced the closure of a $65 million Series B financing round. The round was led by CRV, with participation from Shopify and Renegade Partners, as well as existing investors FirstMark Capital, Ridge Ventures, Peterson Ventures and Lerer Hippeau.

The deal gives the company $340 million after-money value.
Loop Returns was co-founded by Jonathan Poma while he was working at an agency consulting a large Shopify brand to help them with returns and exchanges. He partnered with longtime friend Corbett Morgan to start Loop Returns.
The software works with the Shopify platform to reduce the cost and difficulty with a common problem in retail, which is returns. In fact, According to Shopify, returns account for 20 to 30% of e-commerce sales. For brands big and small, this is a trend that not only costs money, but potentially loses a customer and future revenue.

The loop reaches the return by navigating the user through a series of questions intended to maintain its business. It begins with questions about the size of the item, and then proceeds to the assumption of an exchange, and then provides credit to the customer with the brand upon return.

If a return customer wants, Loop handles some of the sticky pieces of that process, like shipping labels and refunds for brands.

Before the pandemic, the company had big plans around international expansion, platform expansion and product expansion. Ultimately, that black swan moment prompted the company to focus on its core offering and on taking care of its customers, and it paid off, especially on the heels of the acceleration of e-commerce.

The company has grown its team from 20 employees to 100 in 2019, with 41% of the team identifying as female and 16% identifying as BIPOC.

In terms of traction, the company has gone from 200 to 700 customers, and over the same time frame has grown from $26 million to over $100 million in processed returns.

Poma told Nerdshala that the biggest challenge for the startup is expanding the team.

“It’s about bringing great people together and leading them toward a common goal, especially in this remote first world,” Poma said.

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories