Optoro, the US-based creator of an inventory management system for retailers, completed a $30m series D round yesterday that included logistics firm UPS’s Strategic Enterprise Fund subsidiary.
UPS was joined in the round by Revolution Growth, Kleiner Perkins Caufield & Byers (KPCB), Generation Investment Management, Tenfore Holdings, Swan and Legend Venture Partners and Maryland Venture Fund.
Optoro has built a software platform that utilises data analytics and online marketing to pinpoint the most efficient route for excess or returned stock. It has also formed a partnership with UPS to help retailers and manufacturers transport or dispose of unneeded goods.
Alan Gershenhorn, chief commercial officer of UPS, said: “As e-commerce grows, returns will become an increasingly glaring challenge for retailers.
“Through this UPS Strategic Enterprise Fund investment, we are expanding our returns solutions supported by one of the fastest growing companies disrupting the reverse logistics process.”
The round boosted Optoro’s overall equity funding to approximately $115m, $50m of which came in a 2014 round led by KPCB’s Green Growth Fund that included Generation Investment Management, Revolution Growth, Grotech Ventures and Swan & Legend Venture Partners.
TriplePoint Venture Growth BDC Corporation and Square 1 Bank provided the company with $40m in debt financing in July 2015.