Two Boxes Raises $5.3M to Revolutionize E-Commerce Returns
Image: Two Boxes
Denver-based logistics company Two Boxes has raised $5.3 million in an oversubscribed funding round led by Peterson Ventures, more than doubling its valuation. This comes just a year after the company launched with $4.5 million in seed funding, aiming to solve the growing challenges of e-commerce returns. The latest funding round also saw participation from Assembly Ventures, along with existing investors such as Vinyl, Range Ventures and Matchstick Ventures.
The startup was founded by Kyle Bertin and Evan Stalter to simplify and optimize the returns process for brands and 3PLs (third-party logistics providers). While traditional solutions focus on returning items to warehouses, they differentiate themselves by addressing what happens after returns arrive, offering a platform that streamlines inspection, processing and tracking. This approach not only speeds replenishment times, but also reduces return fraud, increases profitability and supports sustainability efforts.
In 2022, the National Retail Federation estimated a staggering $816 billion in returned retail merchandise, a number that continues to grow as e-commerce expands. They aim to tackle this challenge head-on, and has already partnered with Loop, Happy Returns (a UPS company) and more than 20 major 3PLs, such as Capacity, Flowspace and GoBolt.
With its AI-based platform, Two Boxes has demonstrated significant results: an 80% reduction in employee training time, a 50% increase in operational efficiency and a 15% increase in returns revenue. Since its launch, the startup has processed more than $100 million in returns for more than 120 merchants, including popular brands such as Caraway, Tecovas and Thursday Boot Company.
