Frate, a Toronto-based startup transforming the retail returns process, has successfully raised $3.6M CAD in an oversubscribed seed funding round led by Matchstick Ventures. This funding round also saw participation from 2048 Ventures (NYC), Whitecap Venture Partners (Toronto), Closed Loop Venture Partners (NYC), and Better Ventures (San Francisco).
With this latest round, Frate’s total funding now stands at $5.7M CAD.
“We’re excited about the opportunity to further develop our platform and offer retail brands the tools they need to reduce return costs while improving customer satisfaction,” said Bailey Newton, CEO of Frate. “With the support of our new and existing investors, we’re ready to take our solution to the next level.”
Frate’s innovative returns automation platform is designed to help retailers reduce overall returns volume and combat growing issues like return fraud. With a significant increase in online shopping, retailers are facing challenges with rising return costs and fraudulent returns. Frate has implemented novel features such as personalized exchange recommendations, AI-powered virtual condition assessment, and peer-to-peer returns, all aimed to help retailers reduce return associated costs, boosting their bottom-line. Frate has delivered tremendous value to many partners, including billion-dollar Brazilian footwear giant Arezzo&Co (parent company of Schutz, Alexandre Birman, and Arezzo), Peace Collective, Honey, Canada Pooch, and Felina.
“We’re proud of how far Frate has come, but this is just the beginning. Our mission is to help retailers not only manage returns more effectively but also to prevent unnecessary returns from happening in the first place. This funding will allow us to expand our capabilities and continue providing cutting-edge solutions for our rapidly growing customer base,” said Yenn Lei, CTO of Frate.
Frate’s seed round marks a pivotal moment in its journey to reshape how retail brands manage returns, allowing for better business outcomes and more sustainable practices in the retail ecosystem.
