Australian refund tech company, Refundid, has raised a $12 million seed funding capital raise. Led by Salesforce Ventures, this funding will aid in the business' growth and expansion in the retail landscape.
Refundid reverses traditional return-and-refund orders for retailers, fronting the refund to the consumer before the return is made. The refund is then paid by the retailer once the refund is approved.
In 2021, Refundid raised $3 million in equity and debt funding. The business was founded in 2020 and launched in 2021. It is currently backed by AP Ventures which is backed by Afterpay and retail veteran Paul Greenberg.
Refundid is currently being used by 80 retailers, including Showpo, Adore Beauty, sass & bide and Culture Kings According to Refundid, the platform reported an increase in AOV by 15 percent, increasing repurchase speed by 3x and generated a 42 percent increase in repurchase revenue.
This capital raise will continue to drive business growth. “We are thrilled to partner with the great team at Refundid, who are working hand-in-hand with their retail partners to solve a huge pain point in the industry with a truly win-win product that provides value to both retailers and their customers. We look forward to working alongside Brad and the team as they continue to grow,” said the MD of Salesforce Ventures, Mike Ferrari.
Salesforce Ventures has previously invested in payment and tech platforms, including Stripe, Monday.com, Zoom and DocuSign.
“Seeing the very positive results we had achieved with our retail partners so early on, it became clear to accelerate our growth so that Refundid can be offered to more retailers across the country,” shared Brad Karney, the CEO and co-founder of Refundid.
“Historically, going to your local shop with an item and getting an on-the-spot refund was easy. The rise of eCommerce has made many aspects of shopping easier, but not refunds. Refunds are often the point at which a relationship between a customer and retailer is broken. We want to help fix that for the benefit of both the customer and retailer,” he explained.
“Retailers do so much to acquire customers and ensure product and fulfilment are perfect, but with an average [of] 20 percent of those customers asking for a refund, if they have a bad refund experience, you’ll
likely lose that customer. What Refundid has done is turn that potential loss of customer into one that has a much greater long-term value.”
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