Loop Returns , a software company looking to handle the costly and inefficient process of retail/ecommerce returns, has announced the close of a $65 million Series B financing round. The round was led by CRV, with participation from Shopify, Renegade Partners, as well as existing investors FirstMark Capital, Ridge Ventures, Peterson Ventures, and Lerer Hippeau.
The deal values the company at $340 million post money.
Loop Returns was cofounded by Jonathan Poma after he was working at an agency and consulting with a big 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 commonplace issue in retail, which is returns. In fact, according to Shopify , returns account for 20 to 30 percent of ecommerce sales. For big and small brands alike, this is a trend that not only costs money, but potentially loses a customer and future revenue.
Loop approaches the return by navigating the user through a series of questions that are aimed at keeping their business. It starts with questions around sizing of the item, and then moves to the notion of an exchange, and then offers the customer credit with the brand over a return.
If a return is all the customer wants, Loop handles some of the stickier pieces of that process such as shipping labels and refunds for the brand.The company had big plans around international expansion, platform expansion and product expansion […]
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