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Returns startup Rever closes 7.5 million in a round with Y Combinator

Date: March 1, 2024 Time: 06:53:54

The startup to manage online returns Rev announces the closing of a financing round that adds Y Combinator, in addition to the vehicle for very initial Faces from the historic firm Sequoia. The company, with operational headquarters in Barcelona but fiscal in the United States (Delaware), seeks to improve post-sale processes for online purchases.

The company was created in 2021. Before starting with a specific product, they raised almost one million euros in an expansion that was announced months later with two relevant partners: Global Founders, a German fund that participated in companies such as Revolut or Zalando, and the Glovo co-founder, Oscar Pierre. After entering the Y Combinator accelerator in the middle of last year, the company is now announcing the closing of a 7.5 million expansion.

Also involved in the operation is the Sequoia Scouting Fund. This is a private vehicle of the historic Silicon Valley venture capital firm, which supports the main names in American technology. The firm chooses a series of ‘scouts’ -founders of companies or other profiles- who are looking for local startups to invest. These ‘finders’ share the potential profits of the operation in the future. In Europe it has been present for more than two years. The firm provides 100,000 dollars each to invest in very initial faces. The ‘scout’ participating in this operation, whose name has not been revealed, explains that the Spanish startup is trying to “create a category from scratch”.

According to the company’s own figures, it has more than 120 clients, who have operations in more than 40 countries. There are no accounts available and the company rules out offering economic data. It will limit itself to ensuring that this year 2023 the income will be multiplied by five. These come from all orders that go through your returns platform. In this sense, they insist that there will be a total volume transacted “in the double digits of millions”. Its main focus will be on the European market. One of the founders, Marius Montmany, a Glovo process, where he was the global logistics manager.

With this platform they seek to improve the complex returns process for online stores. There are fashion companies such as Inditex itself that have begun to charge for it due to the significant associated costs. Firms like Rever try to integrate into the online store to, initially, offer alternatives that avoid full financial reimbursement. Otherwise, they are the ones who advance the money instantly, without waiting the usual two weeks in the sector. They charge a commission for this service.

In addition to promoting alternatives to returns -they claim that they manage to reduce refunds by up to 45% with incentives for alternatives such as product changes or gift cards-, their technology includes the creation of logistics orders (with integration with the different parcel companies). , customs administration, data analysis or purchasing trends. Now, it seeks to suggest products that are more relevant to the buyer.

A growing market

This is not a new segment, far from it, for the market with ‘Spanish DNA’ in startups. Eduardo Vilar in the United States and which several years ago was acquired for more than 280 million euros by the listed American fintech Affirm, founded by Max Levchin, paypal payment giant. In Spain a little less than a year ago, the firm Reveni, which also operates in the returns market, raised 3 million euros in an operation led by the Spanish manager JME Ventures.

The online returns market has very relevant numbers. In the United States alone, products returned by online shoppers in 2022 had a combined value of $212 billion. At a global level, the eMarketer analysis firm estimates that this year the figure will increase by 2% to 627,000 million dollars. Despite the fact that these are very high figures, this growth rate is lower than that of previous years and this is due, according to its analysts, to the fact that people return to buying products in physical stores and that retailers are implementing new policies such as and artificial intelligence technologies to cut the figure.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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