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Rush ReCommerce plans to maximize its growth with the series A funding round.
FREMONT, CA: "The market needs addressed by Rush ReCommerce's solutions will only grow as the ecommerce model displaces brick-and-mortar shopping for even large home goods purchases," said William Blake III, lead investor in the round and partner at Beringea. "By bringing bulky products that would otherwise end up in a landfill back into the circular economy, Rush ReCommerce is a platform for brands to profitably meet sustainability goals."
A $12.9 million Series A financing has been closed by Rush ReCommerce, a recommerce software and service provider. There are specific plans for the newly invested capital to be used to enhance the company's solution and also to accelerate its growth as a recommerce network. In addition to Beringea, Advantage Capital and existing shareholders participated in the round, led by Beringea.
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In order to help customers effectively manage their ecommerce returns and excess products, Rush ReCommerce has developed a comprehensive end-to-end solution. Due to the high shipping and processing costs associated with returns, most of them end up in warehouses or thrown away. Products are returned directly to Rush ReCommerce's network and evaluated for greater recovery using specialized software. Through its flagship marketplace, The Rush Market, the company has pioneered the online resale of open-box home goods and is known as a leader in this space.
Rush ReCommerce CEO and Co-Founder Doug Nielsen have spent the majority of his career in home furnishings ecommerce: "Online returns are a huge problem for ecommerce players. The returns create dents in the sellers' customer experience and profits. We are working to pound out those dents. We're excited to partner with like-minded investors who recognize this growing problem and are committed to helping support our mission."
More than 5 million pounds of products have been saved from landfills by Rush ReCommerce, which has processed over 225,000 products worth over $60 million. With its multi-faceted approach to tackling this ever-growing problem, the company's mission is to turn the negative aspects of returns into positives for retailers, suppliers, customers, and the environment. In addition to handling online returns for 150 manufacturers and brands, Rush ReCommerce also provides customer service.
"Rush ReCommerce is a great example of the types of businesses we seek to support. The company has a unique model that is changing the way goods are recirculated and distributed to new customers. This model has an immense opportunity for expansion, and we are eager to see it grow," said Damon Rawie, Managing Director, Advantage Capital. "Additionally, we are excited to see the company developing in a part of Omaha that will benefit greatly from the additional jobs the company's expansion will bring."
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