Affirm to acquire Returnly

San Francisco-based consumer credit company Affirm plans to acquire Returnly , a provider of subscription-based service for returns for approximately $300 million.

Returnly has been used by over 8 million shoppers who receive an instant merchant credit upon initiating a return, allowing them to order a new or replacement item immediately versus waiting until their return is fully processed.

Also it raised a bit over $30 million since its inception in 2014 and one of its investors is Alma Mundi Ventures, which operates an insuretch fund and enjoys support from anchor investor Mapfre.

“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.” – Max Levchin, CEO and founder of Affirm.

“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.” – Eduardo Vilar, CEO and founder of Returnly.