Financial technology producer Affirm Holdings agreed on Wednesday to purchase portfolio company Returnly, a US-based provider of payment processing services for e-commerce returns, for approximately $300m in cash and stock.
Founded in 2014, Returnly processes returns of online purchases, taking on the risk to ensure customers get a replacement product before they return the faulty one. It also provides returns management technology and services such as package tracking and green returns.
The company had raised just over $30m, including $19m in a 2019 series B round led by venture capital firm Craft Ventures that also featured Affirm and unnamed existing backers.
Returnly’s earlier investors included Novel TMT, the VC firm formed by telecommunications company Novel Group, in addition to Mundi Ventures, The Venture City, CoVenture, Index Ventures, SV Angel, FJ Labs and various individuals.
Max Levchin, Affirm’s founder and CEO, said: “In 2019, Affirm invested in Returnly because we recognised their technology’s ability to help merchants remove friction from returns, drive loyalty and retain more customers.
“Store credit, issued before the item is actually returned, is now a practical requirement in highly competitive segments like fashion and lifestyle.
“We are excited to bring Returnly’s powerful product to our merchants, and we are thrilled to introduce their more than 8 million users to the transparent, gotcha-free version of buy-now-pay-later as made possible only by Affirm.”
