ePlanet Ventures, eBay, and prominent investors fund return services leader.
ASHBURN, VA—9 April 2001—ReturnBuy, Inc., the innovation leader in returns services, announced today that it has closed a $15 million second round of funding led by Draper Fisher Jurvetson ePlanet Ventures ("DFJ ePlanet"). Several prominent companies made strategic minority investments including eBay (NASD: EBAY), Reicon, and Abacus, the fund associated with the Sears Roebuck family. ReturnBuy benefits retailers, distributors and manufacturers by reducing processing costs and significantly increasing resale revenue on the growing volume of returned merchandise. The company uses channels such as eBay to auction returned goods to consumers.
"This investment allows ReturnBuy to leverage the DFJ ePlanet global network and the extensive reach of eBay to achieve explosive growth," said Asad Jamal, co-chairman and managing director of DFJ ePlanet. "Expect to see ReturnBuy transform what the retail and manufacturing markets can expect in revenue and savings from returns services."
ReturnBuy`s online auction channels dramatically increase resale revenue from returns. Historically retailers have only recovered a small portion of the retail price on returned merchandise, but resale of returned products through eBay, for example, has enabled ReturnBuy to recoup three to five times more value for its clients than through traditional liquidation.
"ReturnBuy offers a practical and efficient solution to a growing problem for U.S. retailers," said Jeff Jordan, senior vice president and general manager for eBay U.S. "eBay`s investment in ReturnBuy reflects our confidence in ReturnBuy and the opportunity it presents for growth."
Silicon Valley firm DFJ ePlanet led ReturnBuy`s round of funding followed by eBay, Inc., Draper Atlantic, Reicon and Abacus, the fund associated with the Sears Roebuck family. The round also includes other strategic investors including Michael Boyd, co-founder of QVC, Inc. and a recent addition to ReturnBuy`s advisory board. Other individuals who reinvested include John Glynn of Glynn Ventures; Frank Bonsal, founder of New Enterprise Associates; and Peter Crisp, Vice Chairman of Rockefeller Financial Services and formerly of Venrock Associates.
"It`s a clear validation of our business to have such top-tier investors behind us," said Walt Shill, president and CEO of ReturnBuy. "Our technology and retail investors are known for selecting companies with proven execution. This capital will enable us to rapidly scale the business to bring our service offering to more retailers, distributors and manufacturers."
ReturnBuy is the first company to use technology to create new dynamics for the returns industry. ReturnBuy`s solution is simple - returned merchandise is sent directly to a ReturnBuy processing facility, where it is evaluated and resold through a variety of online and offline resale channels. This spares merchants from costly storage rooms and dismal liquidation proceeds.
About ReturnBuy
ReturnBuy Inc. combines leading technology and high-velocity logistics to physically process and individually resell like-new products through online and offline resale channels. ReturnBuy`s solution eliminates the traditional supply chain of returned products by reducing the number of intermediaries. In its previous investment round, the company received financing from Draper Atlantic and a team of leading technology investors that also funded Intel, Apple, and Hotmail. Currently, ReturnBuy serves over 10 clients, including Egghead.com, a leading Internet direct marketer of technology and related products. In addition to several top Internet retailers, ReturnBuy serves leaders in traditional retail, as well as distributors and manufacturers. ReturnBuy is headquartered in Ashburn, Virginia, and operates nationally through its facilities in Virginia and South Carolina. For more information visit www.ReturnBuy.com/business.
About ePlanet Ventures
Draper Fisher Jurvetson ePlanet Ventures ("DFJ ePlanet"), (www.dfjeplanet.com), is a global venture capital firm focused on the information technology sector. DFJ ePlanet was founded in 1999 to take advantage of the growing trend towards globalization in technology by the leading Silicon Valley-based venture capital firm, Draper Fisher Jurvetson (www.dfj.com) in partnership with Europe-based ePlanet Partners (founded by Messrs. Roderick Thomson and Asad Jamal). ePlanet invests in seed to later stage companies in Europe, Israel and Asia, and in expansion and later stage companies in the United States. The fund currently operates offices in Redwood City, Singapore, Hong Kong and Tokyo.
About eBay Inc.
eBay (Nasdaq "EBAY"; www.eBay.com) is the world`s largest online trading community. Founded in 1995, eBay created a powerful marketplace for the sale of goods and services by a passionate community of individuals and small businesses. On any given day, there are millions of items listed on the site across thousands of categories. eBay enables trade on a local, national and international basis with local sites in 60 markets in the United States and country-specific sites in the United Kingdom, Canada, Germany, Austria, France, Italy, Japan, Korea and Australia. With the acquisition of Half.com in July 2000, eBay`s community now benefits from a marketplace combining traditional auction-style trading and Half.com`s set-price trading.
Contact:
Alison Burns
SheaHedges, LLC
571-633-1914
aburns@sheahedges.com
Kristi Snapp
ReturnBuy, Inc.
703-723-6025
ksnapp@returnbuy.com
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