Route, a leading post-purchase package tracking and protection solution, announced a $40 million Series C funding round at a valuation of $1.4 billion. The funding round was led by Hanaco VC with participation from JAWS Ventures, Madrona Ventures, and Granger.
This funding round secures the company’s position as a foundational part of the tech stack for global e-commerce brands. Route empowers over 13,000 brands, including Alice + Olivia, BlendJet, Cult Gaia, Tom Ford, Daily Drills, LoveShackFancy, Solo Stove, and Wellbel, to offer powerful experiences like shipment tracking, package protection and carbon offsetting that engage and impress customers long after an online purchase is made. This strengthens a brand’s relationship with its audience, leading to increased loyalty, improved retention, and new revenue streams while reducing costs from common retail issues like shipping losses.
The demand for post-purchase solutions is surging, and Route will hit $100 million in revenue in 2023, and the company is on a clear path to profitability. And in June 2024, Route surpassed $15 billion in protected merchandise, underscoring the e-commerce unicorn’s market position and traction with retailers and their customers.
For e-commerce customers, Route has become a ubiquitous part of the shopping experience: Across 3+ million active users, Route shoppers are using the platform to track their shipments more than 10x per month on average.
Route’s package protection is licensed, compliant, and backed by a legitimate insurance policy, safeguarding merchants and their customers from risk. And fully compliant package protection ensures merchants do not have to worry about the regulatory or financial risk of using an unlicensed provider or DIY software.
Financial Technology Partners (FT Partners) served as exclusive advisor on this deal, helping Route to navigate a unique fundraising environment on the back of its impressive growth trajectory and runway.
KEY QUOTES:
“Today’s consumers demand 24/7 visibility into everything they buy, putting retailers under pressure to meet their expectations. That’s why post-purchase experiences have become central to brands’ identities, because shoppers view them as table stakes. Thousands of brands have turned to Route to deliver the same quality service that billion-dollar retailers provide. With our new funding, we’ll continue to expand our solutions that help brands boost customer lifetime value and satisfaction, while carving our own path to profitability.”
- Michael Yamartino, CEO of Route
“This funding round represents a pivotal moment for Route as we continue to innovate and provide unparalleled solutions that reshape the ecommerce landscape. Our journey from a bold idea to a billion-dollar entity reflects our commitment to excellence and the trust placed in Route by both consumers and brands worldwide.”
- Route’s co-founders Evan Walker and Mike Moreno
“Route is a unique combination of a strong, mature management team, rapid growth with a clear path to profitability, and unique market positioning. We believe post-purchase is the ‘final frontier’ in the ecommerce stack that still has a lot of room for disruption as well as consolidation. The experience can be dramatically improved for both the merchant and, more importantly, the end consumer. Route is the market leader in this category.”
- Lior Prosor, partner and co-founder of Hanaco VC
“Wellbel prioritizes sustainable growth and values trustworthy partnerships. With Route as our partner, we are confident that our business and community are consistently protected.”
- Hattie Gilpin, Wellbel’s Director of Operations
