- E-commerce SaaS platform Loop announced it has raised $10 million in Series A funding led by FirstMark Capital
Loop — an e-commerce SaaS platform that is focused on building “Love after purchase” — announced it has raised $10 million in Series A funding led by FirstMark Capital. Lerer Hippeau and Ridge Ventures also joined the funding round.
Loop launched at out of the Shopify ecosystem in 2017 once a top Shopify brand and agency partnered to build software aimed at improving return and exchange processing. And after experiencing significant uplift to LTV and NPS, the real opportunity became clear — which is to redefine the relationship between a brand and its customers after purchase.
And since then, Loop’s flagship product Returns processed over 2 million returns for over 200 brands on Shopify, including Allbirds, Brooklinen, Chubbies, FIGS, and Thrive Causemetics.
Loop pointed out that 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% of sales lost to returns and less than 1 in 3 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 round of funding will enable Loop to strengthen its Returns offering. Plus it will develop customer partnerships to build a variety of new internal and consumer-facing products in pursuit of its purpose — which is to inspire consumers to enjoy what they buy by deepening its connection to brands and products.
“We believe that post-purchase is the next frontier of commerce,” added 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 changing 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. And having landed three of the most influential investors in e-commerce, Loop 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,” explained 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.”
Launched in 2017, Loop is based in Columbus, Ohio with satellite offices in Toronto, Ontario and Waterloo, Ontario.