SAN FRANCISCO — Returnly, which helps retailers give credit to customers for returns, announced that it raised a $19 million Series B investment. The round was led by Craft Ventures, the venture capital fund co-founded by serial entrepreneur David Sacks, with participation from Max Levchin’s Affirm, and existing investors.
Returnly partners with retailers and brands to help make returns easier. Returnly lets shoppers buy again using return credit before shipping the original items back and settles the new order in real-time, taking the product returns risk. The company has developed a turn-key solution for large scale retailers as well as hosted and fully brandable end-customer touchpoints like order and returns tracking, online returns and exchanges.
“In the age of Amazon, shoppers expect every interaction with a brand to be fast and easy – including post-purchase,” said Jeff Fluhr, general partner at Craft Ventures, who was previously CEO/co-founder of StubHub, a ticketing marketplace that is now a multi-billion-dollar subdivision of eBay. “Returnly gives shoppers the instant and seamless returns experience they have come to expect. For the thousands of retailers competing with Amazon, Returnly levels the playing field while increasing revenue and improving customer loyalty.”
The new financing will help Returnly grow its merchant services and expand its product offering so that more retailers can elevate their online brand, cultivate loyalty and drive revenue throughout the post-purchase experience. As part of this round, Fluhr joins Returnly’s board of directors.
“David Sacks and Max Levchin changed the commerce industry forever with their revolutionary work at PayPal,” said Eduardo Vilar, founder and CEO of Returnly. “To attract a group of investors that created industry-defining companies like PayPal, Affirm and StubHub is an enormous validation for the solution we’ve developed to fix this inherently broken returns model. With their support, we’ll be able to accelerate growth and help merchants everywhere extend a seamless brand experience to one of the most important brand touchpoint consumers have: the return.”
“Successful retailers focus relentlessly on improving the customer experience, and streamlining payments continues to be a very important part of their strategy,” said Max Levchin. “For much of my career I’ve focused on improving payments at the point of sale, but what attracted me to Returnly was their shrewd focus on the post-purchase experience. Post-purchase is an increasingly important component of the shopper lifecycle, and Returnly is helping retailers optimize it.”
Online sales in the U.S. are growing at 15 percent year-over-year and will surpass $600 billion in 2019, according to eMarketer. While return rates vary depending upon product types, 25-30 percent of online purchases are returned on average, nearly three times higher than offline purchases. This creates a market worth up to $180 billion where retailers can improve the experience to help drive repurchases and create loyal and lasting customers.
Returnly plans to integrate its platform with other reverse logistics, e-commerce, loyalty and CRM platforms, and onboard merchants of all sizes and in all markets. This includes product expansion for omnichannel merchants to support “Buy Online Return In Store” offerings.
Returnly is headquartered in San Francisco, with offices in Chicago and Madrid.