Optoro aims to solve e-commerce returns problem
Retail returns specialist Optoro has raised $75 million in new funding to develop new technology to help retailers handle e-commerce returns.
The new funding round, led by Franklin Templeton Investments, brings the company’s total capital raised to $200 million.
“At Franklin Templeton Investments we look for companies that can build long-term value for our shareholders and we believe that Optoro can do that by solving the growing problem of customers returns, particularly in e-commerce,” said Robert Stevenson at Franklin Templeton. “Optoro’s platform and large data set enable retailers and brands to manage the $500 billion customer returns market, and generate measurable benefits for their bottom line. With this investment Optoro can rapidly scale the platform to reach more retailers and brands.”
Optoro helps leading retailers and brands manage, process, and sell returned and excess inventory. Using comprehensive data analytics, Optoro’s returns optimization platform determines the best path for each item, maximizing recovery, lowering processing costs, and reducing environmental waste. Over the past two years, the volume of goods routed by Optoro’s software platform has grown more than fivefold.
“The retail industry has a major problem -- returns create tremendous financial, operational, and environmental waste,” said Tobin Moore, CEO and cofounder of Optoro. “With this new round of funding, we plan to accelerate the adoption of our solution with the world’s leading retailers and brands, and invest in R&D to take our solution to the next level. This positions us to help more retailers increase their profits, while also minimizing their environmental footprints.”
J.P. Morgan Securities LLC acted as sole placement agent, and Cooley LLP acted as legal adviser to Optoro in connection with this financing.
Founded in 2010, Optoro is headquartered in Washington, D.C.