Two Boxes, a software provider focused on optimizing return logistics for brands and third-party logistics providers (3PLs), has raised $5.3 million in an oversubscribed funding round. Led by Peterson Ventures, the round more than doubled the company’s valuation, with participation from Assembly Ventures and existing backers Vinyl, Range Ventures, and Matchstick Ventures.
Unlike many return solutions that focus on transporting items from customers back to warehouses, Two Boxes streamlines the complex processes that occur once the return reaches the warehouse. This includes optimizing return inspection, processing, prioritization, and fraud prevention. By improving the speed and efficiency of returns, Two Boxes helps brands and 3PLs recover inventory faster, boost profitability, and support sustainability initiatives by reducing waste.
The company’s increased valuation reflects strong market confidence in its innovative approach. Taylor Jones, partner at Peterson Ventures, highlighted Two Boxes’ ability to enhance e-commerce businesses through data-driven efficiency and process improvements.
Two Boxes has seen rapid growth, partnering with logistics providers like Loop, Happy Returns (a UPS company), and several leading 3PLs. Since launching in 2023, its software has processed over $100 million in returns for over 120 merchants, including popular brands like Caraway, Made In, and Tecovas. The company boasts a 100% pilot conversion rate and substantial performance improvements for clients, including a 50%+ increase in efficiency and a 15%+ rise in returns revenue.
With the fresh capital, Two Boxes plans to expand its engineering and go-to-market teams while extending its geographic reach beyond North America. CEO Kyle Bertin emphasized the company’s mission to turn returns into a business asset, focusing on fraud prevention, enabling recommerce, and improving client growth.
Additionally, Two Boxes is rolling out new integrations, including a recommerce partnership with Arrive and a Partner Portal to streamline customer onboarding and process optimization. The company aims to empower brands and 3PLs with intelligent return operations and actionable data to drive sustainable growth.
