FloorFound, a software platform that facilitates returns for resales of oversized products for e-commerce retailers, announced Wednesday a $4 million seed round led by LiveOak Venture Partners. Flybridge Capital, Next Coast Ventures, 8VC, individual investor Brett Hurt and FloorFound’s pre-seed investor, Schematic Ventures, also participated in this round. In total, FloorFound has raised $4.6 million in funding since its inception last year.
FloorFound will be using the capital to support additional go-to-market initiatives, new product development and expansion into other segments of the oversized e-commerce space.
FloorFound said it is the first circular commerce platform with a focus on oversized retail items. Founded by e-commerce and supply chain veterans Chris Richter and Ryan Matthews, the company’s turnkey solution helps retail companies manage returns and the resale process of oversized goods by leveraging its national network of freight, transportation and logistics partners, including Pilot Freight, J.B. Hunt, Metropolitan and Deliveright.
Once a return is initiated, FloorFound will arrange for an item to be picked up and delivered to a nearby warehouse, where it is inspected, labeled and stored. From there, FloorFound’s platform will enable retailers with the ability to re-merchandise and list for resale on the retailer’s digital storefront. Current customers include Inside Weather, Feather and Floyd Home.
In an interview with FreightWaves, Richter, FloorFound’s CEO, said he was excited to have the first circular platform for oversized items but was more proud of the impact the company was making reducing environmental waste. “9.5 million tons of furniture end up in landfills every year,” he said. “We want to bring lifetime value to these items through resale.”
Historically, retailers have lost millions of dollars on donations, liquidations and disposal of returns. This has been detrimental specifically for oversized product retailers, as 15% of these items tend to be returned. FloorFound retailers have found 25% recovery of this revenue while using the platform. Richter added that some retailers have been selling out of their return inventory in just one to two days.
“FloorFound’s ability to eliminate the reverse logistics and re-commerce challenges with a superior experience that results in higher margins, less environmental waste and a better customer experience is the answer retailers have been looking for. As a result, adoption by retailers and the end consumer response has been phenomenal,” stated Mike Marcantonio, principal at LiveOak Venture Partners.