Software startup FloorFound raises raises $4m to turn oversized goods returns into resale profit
FloorFound, a software platform that facilitates returns and resales of oversized products for eCommerce retailers, closed a $4 million seed round led by LiveOak Venture Partners with participation from Flybridge Capital, Next Coast Ventures, and 8VC. Existing investor, Schematic Ventures, also participated in the round. The capital will be used to support additional go-to-market initiatives, new product development, and expansion into additional segments of the oversized eCommerce space.
Founded by eCommerce and supply chain software veterans, Chris Richter and Ryan Matthews, FloorFound is the first circular commerce platform focused on oversized retail categories. The Company's turnkey solution manages the returns and resale process of oversized goods for eCommerce retailers by leveraging a national network of freight, transportation and logistics partners. Once a return is initiated, FloorFound arranges for the item to be picked up from the customer and delivered to a nearby warehouse where it is inspected, labeled, and properly stored. Through FloorFound's platform, the item is then remerchandised and listed for resale on the retailer's digital storefront, where cost-savvy and environmentally conscious consumers can purchase it. The result: savings for the retailer, savings for the customer, savings for the environment.
Given that 15% of oversized retail purchases result in returns, FloorFound's solution is providing real value and significant cost savings for these retailers. It enables customers to eliminate the overhead expense and logistical complexity associated with returns management, recover more revenue through resale, and most importantly, advance a sustainability agenda. Historically, retailers lost millions of dollars on donation, liquidation or disposal of returns, but with FloorFound they realize up to 25% recovery of revenue on the items that FloorFound's platform manages on their behalf.
Anna Palmer, General Partner, Flybridge Capital: "We are thrilled about this new set of financial partners including our lead investor LiveOak Venture Partners, who share our vision for bringing circular commerce to oversized retail categories. The depth of supply chain, eCommerce and operating experience that is represented in this round will assure that we establish FloorFound firmly as the leader in our category. We're excited to partner with FloorFound to further accelerate the growth of their circular commerce platform. From returns to recaptured revenue, FloorFound is the future of retail."
Mike Marcantonio, Principal, LiveOak Venture Partners: "The unprecedented growth in eCommerce is well-characterized, but it's led to new challenges for retailers. FloorFound's ability to eliminate the reverse logistics and re-commerce challenges with a superior experience that results in higher margins, less environmental waste, and a better customer experience is the answer retailers have been looking for. As a result, adoption by retailers and the end consumer response has been phenomenal." As part of the financing, Marcantonio will join FloorFound's Board of Directors.