COLUMBUS, Ohio, Nov. 12, 2019 /PRNewswire/ -- Loop, the e-commerce SaaS platform focused on building Love after purchase™, has closed a $10 Million Series A funding round. FirstMark Capital, an early investor in Pinterest and Shopify, led the round, and was joined by Lerer Hippeau and Ridge Ventures.
Loop was born from the Shopify ecosystem in 2017, after a top Shopify brand and agency partnered to build software aimed at improving return and exchange processing. After experiencing significant uplift to LTV and NPS, the real opportunity became clear: to redefine the relationship between a brand and its customer after purchase. Since then, Loop's flagship product, Returns, has processed more than two million returns for over 200 brands on Shopify, including Allbirds, Brooklinen, Chubbies, FIGS, and Thrive Causemetics.
In today's acquisition-obsessed world of commerce, direct-to-consumer brands can spend upwards of $100 to acquire each customer, only to see 30 percent of sales lost to returns and less than one in three customers ever coming back to make a second purchase.
"Direct-to-consumer brands have an opportunity to pioneer a more enlightened era of consumerism, one in which we buy less that means more," said Corbett Morgan, CEO at Loop. "Working with these emergent and impactful brands over the last few years, we've recognized the profound power they have to build connectivity; we'll use this funding to help equip these companies to change commerce for the better."
The Series A funding will allow Loop to strengthen its Returns offering. Additionally, it will develop customer partnerships to build a variety of new internal and consumer-facing products in pursuit of its purpose: to inspire consumers to love what they buy by deepening its connection to brands and products.
"We believe that post-purchase is the next frontier of commerce," said Jonathan Poma, President and COO of Loop. "The post-purchase journey is where brands and customers will build relationships with one another, and it's where we're focused—on Love after purchase™."
Loop is disrupting how merchants are thinking about the post-purchase journey beyond returns while helping brands envision how consumers will interact with its products in the future. Having landed three of the most influential investors in e-commerce, Loop has secured yet another proof point that the company is on to something meaningful.
"We've been fortunate to make great investments that have fit our thesis around the importance of discovery and infrastructure in e-commerce," said Amish Jani, Founder and Partner at FirstMark Capital. "We believe a new segment is emerging around connection. Between the phenomenal product-market fit of Loop's Returns product and the strength of their vision for the future, we believe Loop will be a very important company in the next generation of commerce."
Loop was founded in 2017, and is headquartered in Columbus, OH with satellites in Toronto, ON, and Waterloo, ON. Its flagship product, Returns, provides an elegant, end-to-end consumer-facing solution for online returns and exchanges, creating happier customers, and helping merchants convert refunds to exchanges while driving customer lifetime value. Loop's mission is to lead humans to love what we buy through deepening our connection to brands and products.
MEDIA CONTACT: Casey Sudzina