The online returns market boasts significant figures. In the United States alone, products returned by online shoppers in 2022 amounted to a staggering €194 billion. In that context, Barcelona-based online returns management startup, Rever, has raised a financing round of €7.5 million. The funding was provided by several investors, including Spanish VC Mundi Ventures, and Y Combinator.
Also participating in the funding round is Sequoia’s Scouting Fund, a unique vehicle operated by the Silicon Valley venture capital firm. The Scouting Fund has been active in Europe for over two years, providing $100,000 to each scout for investment in the very early stages of startups. While the identity of the scout involved in Rever’s funding round remains undisclosed, they describe the Spanish startup as aiming to “create a category from scratch.” Rever, which operates with headquarters in Barcelona and is legally registered in the United States (Delaware), aims to enhance the post-sale processes of online shopping.
The startup claims to have over 120 clients across more than 40 countries, although no financial data or accounts are publicly available. However, the company confidently projects a fivefold increase in revenue for the fiscal year 2023. These revenues will primarily come from the orders processed through their returns platform, with an anticipated total transacted volume reaching the “double-digit millions.” Rever’s main focus will be on the European market. One of the company’s founders, Marius Montmany, previously served as the global logistics manager for Glovo.
The primary objective of Rever’s platform is to streamline the complex returns process for online stores. Given the significant costs involved, some fashion companies, including Inditex, have started charging customers for returns. Startups like Rever aim to integrate with online stores, initially providing alternatives to full economic reimbursements. They also offer instant payment to customers, eliminating the typical two-week waiting period common in the industry. In exchange for this service, Rever charges a commission.
In addition to facilitating alternative return options, Rever’s technology encompasses various features such as logistics order creation (integrating with different parcel companies), customs administration, data analysis, and purchase trend analysis. The company is now venturing into suggesting more relevant products to buyers.
Founded in 2021, Rever initially raised nearly €1 million in a previous funding round before unveiling their flagship product. Notable partners involved in the earlier round were Global Founders, a German fund that has invested in successful companies like Revolut and Zalando, as well as Oscar Pierre, the co-founder of Glovo. After joining the Y Combinator accelerator in mid-2022, Rever has now concluded a new funding round, securing €7.5 million.