- General
- July 31, 2018
- 4 minutes read
Returns optimization tech company Optoro raises $75 million more for its service
Image credit : Optoro Washington based logistics technology company Optoro has now raised $75 million from several firms consisting of Franklin…
Image credit : Optoro
Washington based logistics technology company Optoro has now raised $75 million from several firms consisting of Franklin Templeton, Generation Investment Management, Revolution Growth and Tenfore Holdings in a funding round which brings the total raised by the company which provides software for both online and offline retailers to manage the re-sale of returned inventory by customers to a figure of $200 million.
Optoro which was founded 8 years ago makes use of in-depth data analytics and online marketing via different channels to maximize recovery of items returned by customers with the company providing various methods of handling the returned goods which include taking them back to manufacturers, discount sales on its e-commerce website Blinq.com and several other methods.
Optoro’s client list now include the likes of Groupon, Target, Staples, Home Depot, Best Buy, Jet.com, and several others some of which are not made public by the company which had revenues of more than $50 million last year, according to Forbes and was valued at $346.5 million in its most previous round of funding as stated by Pitchbook.
The company’s other investors include KPCB, UPS, Grotech Ventures, QED, Maryland Venture Fund, and SJF Ventures among others.
“The return rate from e-commerce sales is two to three times the return rate of brick-and-mortar, sometimes higher in fashion and apparel,” said Optoro co-founder and Chief Executive Tobin Moore in a statement to the Wall Street Journal. “With the majority of retailers also paying for shipping on returns, it’s a major logistics cost.”
With e-commerce growing at a rapid rate with more shopping taking place online, Optoro’s service jumps on the opportunity to provide returned inventory management services for more retail companies.
Shoppers are likely to go back to a particular service if they have a desirable returns experience making Optoro very valuable to its clients with the company cutting down on waste in addition to improving the customer experience.
Optoro’s business space also counts other notable companies consisting of the likes of B-Stock Solutions which raised $65 million just last month for its service, Genco which was acquired for $1.4 Billion by FedEx in 2015, Liquidity Services, Inturn, IFS and several others.
