Two Boxes Secures $5.3M in Oversubscribed Funding Round
With more than one million returns processed to date, the company is a proven logistics solution Two Boxes, the best way for brands and 3PLs to streamline returns and capture critical data from the process, has successfully raised $5.3 million. The oversubscribed funding round led by Peterson Ventures more than doubled the company’s valuation and saw participation from new investor Assembly Ventures, alongside renewed support from existing backers Vinyl, Range Ventures, and Matchstick Ventures.
The Two Boxes Solution
Several solutions address getting an item from a customer’s house back to the warehouse, but Two Boxes uniquely focuses on what happens when the return arrives at the warehouse — a historically complex, manual, and inefficient process. With Two Boxes, brands and 3PLs optimize returns inspection, prioritization, processing, tracking, and a growing list of obstacles.
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Recent Two Boxes product innovations empower brands and 3PLs to effectively combat return fraud, a costly issue that is growing in both scale and sophistication. Additionally, by facilitating better returns management and speeding up the timeline in which inventory goes back to stock, Two Boxes makes brands and 3PLs more profitable, supports sustainability efforts, and reduces waste that might otherwise end up in landfills.
The company’s new valuation underscores the market’s confidence in the Two Boxes’ approach and the significant impact it has already made on its customers’ operations.
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“Across our portfolio of e-commerce companies, we see firsthand how damaging high return rates can be to a business,” says Taylor Jones, partner at Peterson Ventures. “Two Boxes optimizes what has always been a labor-intensive process while providing data insights that unlock further efficiencies. We are excited to support Two Boxes as they continue to innovate, expand, and become invaluable to the logistics and e-commerce sectors.”
Rapid Growth
Two Boxes recently made news partnering with Loop and Happy Returns, a UPS Company, and currently serves over 20 third-party logistics providers (3PLs) in North America, including industry leaders like Capacity, Flowspace, and GoBolt.
Clients recognize the value of Two Boxes immediately upon trying it – the solution boasts a 100% pilot conversion rate, and 100% of 3PLs who have tested the software expanded their usage within 90 days. Clients report significant benefits, including an 80% reduction in employee training time, a 50%+ increase in efficiency, a 15%+ boost in returns revenue, and complete visibility into critical metrics for both 3PLs and brands.
Since launching their product in 2023, Two Boxes software has been used to process over $100M in returns for over 120 merchants, including popular brands like Caraway, Made In, Tecovas, The Perfect Jean, and Thursday Boot Company.
Looking Ahead
With the capital infusion, the company plans to grow its engineering and go-to-market teams, as well as expand their geographic footprint beyond North America.
“Our mission is to make returns an asset instead of a liability and we’ve never been more excited about our ability to execute against that mission,” says Kyle Bertin, co-founder and CEO Two Boxes. “We are committed to advancing our latest innovations in eliminating fraudulent returns, enabling recommerce, and scaling with rapidly growing brands. We remain dedicated to driving efficiency and sustainability, increasing profits, improving customer experiences, and supporting the growth of our clients—and this new capital will help us to accelerate these efforts at scale.”
New Features, Integrations, and Partnerships
Two Boxes recently launched several new features, including a comprehensive Partner Portal designed to enable seamless onboarding and ongoing optimization for customers. This will enable rapid deployment, easy optimization of return processes, and simplified collaboration across 3PLs and brands. Additionally, they enabled full localization of software for multi-language support to empower warehouse staff regardless of their primary language. Two Boxes just integrated with Redo and will soon announce other integrations, all of which will further enable their ability to support both fast-growing e-commerce brands and enterprise merchants. They established their first recommerce partnership with Arrive, enabling brands and 3PLs to make recommerce a critical part of their returns strategy. Finally, Two Boxes is rolling out an entirely new set of products to empower brands and 3PLs to fight fraud and abuse via intelligent return operations and actionable data.
