Known for its package tracking and protection solutions,
Route surpassed $100 million in
revenue in 2023 and $15 billion in
protected merchandise, solidifying its position as a foundational
part of the ecommerce tech stack
LEHI,
Utah, June 25, 2024 /PRNewswire/ -- Route, the
leading post-purchase package tracking and protection solution,
today announced a $40 million Series
C funding round at a $1.4 billion
valuation, cementing its position as a foundational part of the
tech stack for global ecommerce brands. The round was led by Hanaco
VC with participation from JAWS Ventures, Madrona Ventures, and
Granger.
Route empowers more than 13,000 brands, including Alice +
Olivia, BlendJet, Cult Gaia, Tom
Ford, Daily Drills, LoveShackFancy, Solo Stove, and Wellbel,
to offer powerful experiences like shipment tracking, package
protection and carbon offsetting that engage and delight customers
long after an online purchase is made. Overall, this strengthens a
brand's relationship with its audience, leading to increased
loyalty, improved retention and new revenue streams, while reducing
costs from common retail issues like shipping losses.
With demand for post-purchase solutions surging, Route achieved
an impressive $100 million in revenue
in 2023, and is on a clear path to profitability. Additionally, in
June 2024, Route surpassed
$15 billion in protected merchandise,
underscoring the ecommerce unicorn's market position and traction
with retailers and their customers.
"Today's consumers demand 24/7 visibility into everything they
buy, putting retailers under pressure to meet their expectations.
That's why post-purchase experiences have become central to brands'
identities, because shoppers view them as table stakes," said
Michael Yamartino, CEO of Route.
"Thousands of brands have turned to Route to deliver the same
quality service that billion-dollar retailers provide. With our new
funding, we'll continue to expand our solutions that help brands
boost customer lifetime value and satisfaction, while carving our
own path to profitability."
"This funding round represents a pivotal moment for Route as we
continue to innovate and provide unparalleled solutions that
reshape the ecommerce landscape," Route's co-founders Evan Walker and Mike
Moreno said in a joint statement. "Our journey from a bold
idea to a billion-dollar entity reflects our commitment to
excellence and the trust placed in Route by both consumers and
brands worldwide."
For ecommerce customers, Route has become a ubiquitous part of
the shopping experience: Across more than three million active
users, Route shoppers are using the platform to track their
shipments more than 10 times per month on average. Additionally,
Route's customer satisfaction score of 97% is best in class
compared to the ecommerce industry benchmark of 80%.
"Route is a unique combination of a strong, mature management
team, rapid growth with a clear path to profitability, and unique
market positioning," said Lior
Prosor, partner and co-founder of Hanaco VC. "We believe
post-purchase is the 'final frontier' in the ecommerce stack that
still has a lot of room for disruption as well as consolidation.
The experience can be dramatically improved for both the merchant
and, more importantly, the end consumer. Route is the market
leader in this category."
Route's package protection is unique in that it is licensed,
compliant and backed by a legitimate insurance policy, safeguarding
merchants and their customers from risk. Fully compliant package
protection ensures merchants don't have to worry about the
regulatory or financial risk of using an unlicensed provider or DIY
software.
"Wellbel prioritizes sustainable growth and values trustworthy
partnerships. With Route as our partner, we are confident that our
business and community are consistently protected," said
Hattie Gilpin, Wellbel's Director of
Operations.
Financial Technology Partners (FT Partners) served as exclusive
advisor on this transaction, helping Route to navigate a unique
fundraising environment on the back of its impressive growth
trajectory and runway.
About Route
Route is the leader in the post-purchase
experience. From delivery to re-discovery, Route protects brands
and their customers with licensed shipping insurance, fast issue
resolution, package tracking, carbon neutral shipping, and
remarketing. This helps brands increase revenue, reduce costs, and
improve the customer experience—and gives customers the power and
convenience of tracking everything they order in one place, with
the confidence it will arrive safely. Route transforms negative
experiences into positives, and positive experiences into repeat
customers. Since launching in 2019, Route has built an ecommerce
network of 13,000 brands and tracked more than $15 billion in protected merchandise. To learn
more about Route's post-purchase experience solutions, or to
download the app, visit route.com.
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SOURCE Route