PayPal has made a strategic investment in Happy Returns as part of an $11 million financing round that also included existing investors U.S. Venture Partners and Upfront Ventures. The returns, logistics and reporting solution provider has raised a total of $25 million since its founding in 2015.
“Our mission is to make returns more delightful for consumers, more cost-effective for retailers, and more sustainable for the planet,” said David Sobie, Co-Founder and CEO at Happy Returns in a statement. “We’re thrilled to work with PayPal to make the process of returning more seamless for shoppers and our service more broadly available to PayPal’s large network of merchants.”
Happy Returns has been on a strong growth path. The company debuted self-service return kiosks in March 2019, and it now operates 350+ manned Return Bar locations in 63 U.S. metro areas. The company’s Full Stack Returns solution, a combination of software, services and logistics that enables consumers to return and exchange online purchases in person, has been adopted by digitally native brands including Rothy’s, Everlane and Parachute Home. The volume of returns and exchanges handled by Happy Returns has grown 800% year-over-year.
“Happy Returns has reengineered the return process with the customer in mind and that brings greater cost savings and efficiencies to merchants,” said Robert Clarkson, VP, North America at PayPal in a statement. “Working with Happy Returns will help us learn more about how returns can decrease the friction in shopping online and how to help merchants address this growing problem.”