Returnly, the post-purchase payments company that gives brands and retailers a competitive advantage, today 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, TheVentureCity and existing investors. The company will use this new financing to give thousands of retailers a leg up against Amazon.
“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.”
THE VENTURE CITY
“We like Returnly because it is tackling a large, global problem with a unique solution that has a clear, positive ROI for its customers. Additionally, Returnly perfectly embodies our cross-border approach to investing and company building”, said Laura González-Estéfani, founder and CEO of TheVentureCity. Eduardo Vilar, Returnly’s CEO, is originally from Spain and while the company is headquartered in San Francisco, their core engineering and AI team powering their machine learning underwriting for instant refunds is distributed between Madrid, San Francisco, and Chicago. This allows Returnly to bring market leading talent onboard while operating more leanly than its strictly SF-based or US-only peers.
Returnly partners with retailers and brands to remove product returns friction altogether. 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.
“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 will continue to lead the way in developing innovative products and services that improve the post-purchase experience. The company will continue 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 helps online retailers and brands bring frictionless returns to the modern shopper. The post-purchase payments company lets consumers buy again using their return credit before shipping the original items back, driving loyalty and incremental sales. Returnly settles orders made with credit in real-time and takes the product returns risk for the merchant. Returnly has developed a turn-key solution around its core post-purchase payments technology that includes returns management tools for large scale retailers as well as hosted and fully brandable end-customer touchpoints like order and returns tracking, online returns and exchanges. Returnly is headquartered in San Francisco, with offices in Chicago and Madrid.