‘Buy now, pay later’ company Affirm acquires returns platform Returnly for $300M
/San Francisco-based Affirm, which offers ‘buy now, pay later’ (BNPL) financing for consumer purchases, announced that it will acquire Returnly, a returns platform that allows customers to get instant store credit even before a return is processed. Returnly will be acquired for $300M.
Why should we care?
As consumers increasingly turn to e-commerce during the pandemic, managing extra costs associated with returns is top-of-mind for retailers. U.S. consumers returned $428M in merchandise in 2020, according to the National Retail Federation, with online returns doubling year over year. A smooth return and store credit infrastructure for consumers ensures retailers cut down on additional expenses associated with returns. Returnly, a 7-year-old San Francisco-based company, lets shoppers buy again using return credit before shipping the original items back. Returnly settles the new order in real time, taking on the product return risk. The offering enhances Affirm’s pitch to merchants, and will allow it to move into a new element of the retail purchase journey. “Store credit, issued before the item is actually returned, is now a practical requirement in highly competitive segments like fashion and lifestyle,” Max Levchin, founder and CEO of Affirm said in a statement. The transaction is expected to close in Affirm’s fourth fiscal quarter ending June 30, 2021. Returnly serves more than 1,800 merchants, has helped process more than $1B in returns, and has been used by more than 8 million shoppers.
