Two Boxes has raised $3.2 million in new funding led by Assembly Ventures, bringing its total funding to $13 million as the company scales its AI-driven returns processing platform across global markets. The round also included continued participation from existing investors Peterson Ventures and Matchstick Ventures, both of which increased their commitments.
The Denver-based company is focused on modernizing reverse logistics through AI-powered tools such as image classification, anomaly detection, and fraud identification. Its platform enables logistics providers and retailers to process returns more efficiently, recover inventory faster, and reduce fraud-related losses.
The new capital will be used to accelerate product development and expand enterprise adoption, particularly across retail, direct-to-consumer, and B2B segments. The company is also planning to grow its footprint beyond North America as demand increases globally.
Two Boxes has experienced rapid growth, onboarding approximately two third-party logistics providers per month and one new merchant per day in 2025. The platform now processes nearly $1 billion in returned inventory value annually across three continents.
The company serves major enterprise clients including Stord, Cart.com, and Radial, demonstrating its ability to operate at scale within complex fulfillment networks.
Industry dynamics are fueling demand for solutions like Two Boxes. Returns volumes in the U.S. have grown at twice the rate of overall e-commerce since 2020, while returns-related fraud has increased at four times that pace. This has elevated returns processing from a back-office function to a critical driver of profitability for retailers and logistics providers.
Assembly Ventures’ continued backing reflects confidence in the company’s technology and market opportunity, particularly as AI becomes central to optimizing supply chain operations and combating fraud.
Two Boxes positions itself as a foundational infrastructure layer for modern commerce, helping enterprises navigate the growing complexity and cost pressures associated with returns while improving operational efficiency and margin protection.
KEY QUOTES
“The demand we’re seeing from enterprise accounts like Radial reflects a broader market reality: returns processing is a critical, often underserved function in modern logistics. This raise gives us the runway to continue meeting that demand head-on while accelerating our roadmap to serve not just DTC returns, where we’ve seen strong success, but also the B2B and retail returns segments that represent a significant and growing opportunity in North America and beyond.”
Kyle Bertin, Co-Founder & CEO, Two Boxes
“AI-powered image classification, anomaly detection, and automation aren’t features we’re bolting on, they’re central to how Two Boxes delivers value at scale. This funding accelerates the intelligence we’re giving every associate, anywhere in the world, to make better, faster decisions on every return with less fraud. That’s what makes this platform defensible.”
Evan Stalter, Co-Founder & CPO, Two Boxes
“Technology like Two Boxes enables Radial to better meet the demands of modern retail. Two Boxes meaningfully improves operational efficiency across our network, gets more inventory back to stock faster, and helps our clients combat fraud. The result is less waste and more retained revenue for the brands we serve. We’ve seen this firsthand. Two Boxes was part of the technology powering the recent brand launch, SYRN, a testament to the platform’s ability to perform at scale from day one.”
Shauna Bowen, EVP, Chief Digital & Transformation Officer, Radial
“The need for AI-powered returns processing technology has never been more clear. Returns used to be a back-office function. Today, they’re a margin battleground. Two Boxes is building the modern returns infrastructure for a new era of e-commerce, where 3PLs and retailers must process returns efficiently, reduce fraud, and protect margins simultaneously.”
Sujoy Sarkar, Director & Head of Silicon Valley Office, Assembly Ventures
