Affirm to acquire smart returns platform provider Returnly for $300mn
By Pavithra R
Affirm, providing significant disruptive innovation to the financial industry, has announced entering into a definitive agreement to acquire Returnly, a leader in online return experiences and post-purchase payments, for $300 mn.
Returnly is the leading provider of digital return experiences for direct-to-consumer brands. The firm uses financial technology to help direct-to-consumer brands offer the instant and seamless returns experience that their shoppers have come to expect. It serves more than 1,800 merchants and has helped process more than $1 bn in returns, and used by over 8 mn shoppers. Returnly takes the product return risk and settles orders in real-time, making returns and exchanges seamless and helping merchants drive higher return-to-repurchase rates, increased revenue from returns and higher customer satisfaction.
“Over the last few years, alongside the rapid growth of online shopping, consumers’ expectations of accommodations for returns and exchanges have increased significantly. In 2019, Affirm invested in Returnly because we recognized their technology’s ability to help merchants remove friction from returns, drive loyalty, and retain more customers. Store credit, issued before the item is actually returned, is now a practical requirement in highly competitive segments like fashion and lifestyle. We are excited to bring Returnly’s powerful product to our merchants, and we are thrilled to introduce their more than eight million users to the transparent, gotcha-free version of buy-now-pay-later as made possible only by Affirm,” said Max Levchin, CEO and founder of Affirm.
The acquisition comes as returns continue to be a source of increased costs and complexities for merchants. The transaction is expected to close in Affirm’s fourth fiscal quarter ending June 30, 2021.
“We started Returnly to fix the broken returns model that offered consumers and merchants nothing but downside and frustration. As returns continue to challenge and inhibit commerce, we believe that now is the right time to join forces with Affirm and expand the reach of our mission. We look forward to continuing to serve our customers and help more businesses offer the instant and easy returns experience that their shoppers have come to expect,” said Eduardo Vilar, CEO and founder of Returnly.
Founded in 2012, San Francisco-based Affirm offers a more transparent, flexible alternative to credit cards. Its mission is to deliver honest financial products that improve lives. The company operates as a financial lender of instalment loans for consumers to use at the point of sale to finance a purchase.
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