Loop Raises $65M Series B Funding - CRV Leads Investment

Loop Returns Secures $65 Million in Series B Funding

Loop Returns, a company specializing in solutions for the often-expensive and complex issue of retail and e-commerce returns, has successfully completed a $65 million Series B financing round.

CRV spearheaded the investment, with additional participation from Shopify and Renegade Partners. Existing investors, including FirstMark Capital, Ridge Ventures, Peterson Ventures, and Lerer Hippeau, also contributed to this funding round.

How Loop Returns Addresses the Returns Challenge

Loop’s strategy centers on proactively addressing returns by engaging customers through a guided series of inquiries. The initial focus is on understanding the reason for the return, specifically issues related to item sizing.

Following this, the system explores the possibility of an exchange before ultimately presenting the customer with the option of store credit, encouraging continued business with the brand.

Should a customer definitively request a return, Loop streamlines the logistical aspects for the brand. This includes managing shipping labels and processing refunds.

Company Growth and Diversity

Significant growth has been observed within the company. Loop Returns has expanded its workforce from 20 employees in 2019 to a current total of 100.

The company demonstrates a commitment to diversity, with 41% of its team identifying as female and 16% identifying as BIPOC.

Key Traction Metrics

Loop Returns has experienced substantial growth in its customer base, increasing from 200 to 700 clients.

The total value of returns processed through the platform has also risen dramatically, jumping from $26 million to over $100 million within the same period.

Future Challenges and Scaling

According to Poma, a key challenge facing the startup is effectively scaling its team to meet growing demand.

“The primary focus is on attracting and retaining talented individuals while maintaining alignment towards shared objectives, particularly within a remote-first work environment,” Poma stated to TechCrunch.