Returnmates Rebrands As Sway Raises 195m Series A
Sway, formerly known as Returnmates, has recently raised $19.5 million in a Series A funding round, spearheaded by 7GC, with contributions from Blackhorn Ventures, Lightshed Ventures, and Rise of the Rest Revolution. This funding boosts the Los Angeles-based company’s total capital to $25.6 million. The rebrand to Sway reflects its expansion beyond returns, now encompassing last-mile delivery capabilities.
Co-founder and CEO Eric Wimer, an early Uber employee, alongside co-founder Kristian Zak, launched Sway to address inefficiencies in package delivery and returns. This venture was inspired by a problematic Post Office visit in 2020. Sway’s innovative approach features a two-way communication platform and a network of driver-partners, ensuring seamless monitoring of purchases from delivery to potential returns.
Customers benefit from a user-friendly two-way SMS platform and tracking page, offering a precise 30-minute delivery/pickup window and enabling the addition of access instructions and extra packages for pickup. Sway’s service significantly reduces the return cycle from an average week to less than three days, offering next-day and two-day delivery services, along with doorstep return and exchange options.
Brands utilizing Sway have observed a 66% decrease in lost package rates and a 20% surge in repeat purchases compared to traditional carriers. Sway’s process involves verifying items at its warehouse before returning them to retailers, thus preventing fraud and facilitating instant refunds. This method also consolidates multiple returns into one package, cutting per unit shipping costs and eliminating the need for individual repackaging.
Since its inception in August 2021, Sway has expanded to 20 cities, growing its team from five to 100 members. During this period, it achieved a 14-fold revenue increase and a sevenfold growth in its customer base. Currently operational in states like California, Texas, New York, and Florida, Sway plans to use the new funds to further technology development, team expansion, and coverage increase from 20 to 25 cities.
This latest investment underscores the industry’s recognition of Sway’s potential to transform the e-commerce returns experience, aligning with the rising demand for efficient, customer-centric delivery and return solutions.
