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Newgistics lands additional funding, signs two new long-term contracts
Newgistics Inc., a provider of returns management systems for catalog and online retailers, has received a $16.5 million investment and signs long-term contracts with Lillian Vernon Corp. and Sincerely Yours Inc.
Newgistics Inc., a provider of returns management systems for catalog and online retailers, has received a $16.5 million investment by Austin Ventures, Spiegel-Hermes General Service LLC, R.R. Donnelley & Sons Co. and AV Labs. This round raises the company`s total funding to $27.5 million.
At the same time that it announced the additional funding, Austin, TX-based Newgistics also reported that Lillian Vernon Corp. and Sincerely Yours Inc. have signed multi-year contracts with Newgistics. These catalog and online retailers will offer Newgistics’ product returns services in time for the 2001 holiday season.
Also, The Spiegel Group`s merchant companies, including Eddie Bauer, Newport News and Spiegel Catalog, are preparing a test and a phased rollout of the Newgistics product, known as ReturnValet.
With this round of investment, Newgistics has relationships with three logistics companies: Donnelley, Spiegel-Hermes and U.S. Freightways, an original investor in Newgistics.
“Managing returns is a complex process and Newgistics` superior product is helping established companies to start saving money immediately,” Austin Ventures General Partner Ken DeAngelis said. “Equally important to catalog and online retailers is that their customers will have a more pleasant returns experience, encouraging future purchases."
ReturnValet includes 4,000 nationwide neighborhood return locations, integrated software and a package of shipping, warehouse, disposition and liquidation services.