Recommerce software and service provider Rush ReCommerce announced that it has closed a $12.9 million Series A financing, anchored by transatlantic venture capital investor Beringea.
The company said intends to use the newly invested capital to enhance its solution and accelerate the growth of its recommerce network. Advantage Capital and existing shareholders also participated in the funding round.
Rush ReCommerce has developed an end-to-end solution for home goods ecommerce returns and excess products. Most returns, especially bulky items, end up stuck in warehouses or may be disposed of due to high shipping and processing costs.
With Rush ReCommerce’s solution, products are returned directly to Rush’s network and processed with specialized software that evaluates products for greater recovery. The company is pioneering resale of open box home goods online, through its flagship marketplace The Rush Market.
The company said it has processed over 225,000 products with a retail value of $60 million and has helped save over 5 million pounds of products from landfills. With its multi-faceted approach to tackle this ever-growing problem, the company’s mission is to turn the negative aspects of returns into positives for retailers, suppliers, customers, and the environment. Rush ReCommerce is currently working with 150 manufacturers and brands to handle their online return volume.
“The market needs addressed by Rush ReCommerce’s solutions will only grow as the ecommerce model displaces brick-and-mortar shopping for even large home goods purchases,” said William Blake III, lead investor in the round and partner at Beringea. “By bringing bulky products that would otherwise end up in a landfill back into the circular economy, Rush ReCommerce is a platform for brands to profitably meet sustainability goals.”
Rush ReCommerce CEO and Co-Founder Doug Nielsen has spent the majority of his career in home furnishings ecommerce: “Online returns are a huge problem for ecommerce players. The returns create dents in the sellers’ customer experience and profits. We are working to pound out those dents. We’re excited to partner with like-minded investors who recognize this growing problem and are committed to helping support our mission.”
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