Cambridge Capital's $20M investment in ReverseLogix
Reverse logistics is "The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal."
The global pandemic compounded the need for, and thereby accelerated the adoption of, a myriad of trends that were, if perhaps somewhat slowly, ushering in a new era. Covid-19 hammered the gas pedal on key trends such as automation and digitisation, eCommerce, and sustainability. Reverse logistics is no exception. The increased focus on sustainability, merged with the massive shift to eCommerce, propelled reverse logistics up the priority list.
Considering the heavy environmental impacts of returns, it's nice to see ReverseLogix Corp. leading the way, at the forefront of innovation in a $1 trillion global market. Automating end-to-end reverse logistics for manufacturers, eCommerce brands and third-party logistics on a cloud-based platform, ReverseLogix is designed to manage every step of returns, repairs, and after-sales care for the entirety of the reverse logistics ecosystem.
Headquartered in Burlingame and founded in 2014, ReverseLogix is a pioneer of SaaS-based centralised returns management and serves top brands worldwide. With a long list of impressive customers like FedEx, Electrolux and Cole Haan, ReverseLogix is blazing the trail in an underserved market. Purpose-built for reverse logistics workflows, ReverseLogix modules are designed to manage returns initiation and processing, repair management, warehouse management and inventory optimisation.
Earlier this month, ReverseLogix announced it had raised $20 million in its first round of external funding from Cambridge Capital. The new capital will enhance the company's capabilities and resources to deliver a turn-key, modular SaaS platform to manage, plan and execute the complex end-to-end reverse logistics process for the world's largest eCommerce focused companies.
The Series A financing was provided by Cambridge Capital, a forerunning supply chain technology-focused investment firm. Along with the investment, Cambridge Capital's Benjamin Gordon and Matt Smalley have now joined ReverseLogix's Board of Directors.
- According to Bank of America and McKinsey, the global pandemic spurred growth in eCommerce in the US from 16% to 34% of all retail sales.
- With eCommerce seeing a return rate of 25%, total packages returned in 2020 increased by 70%, with significant continued growth expected.
- Managing returns is a manual and cumbersome process, costing eCommerce businesses 20% of the value of goods. Aiming to reduce costs, companies are looking to leverage best-of-breed technology solutions to streamline and better manage processes.
- ReverseLogix is capable of managing both B2B and B2C returns, empowering a truly circular supply chain and presenting a significant opportunity to industries that are able to recapture raw material costs through rework or reprocessing.
"After bootstrapping ReverseLogix for over 6 years, I am excited to announce this significant investment. Cambridge Capital is the perfect partner for us who has deep experience in logistics technology globally. Working with them will allow us to continue developing our platform, expanding our leadership team and extending our high-growth trajectory into 2021 and beyond, leveraging their industry relationships with key customers and partners," said Gaurav Saran, Founder and CEO of ReverseLogix.
"We are extremely excited to partner with Gaurav and ReverseLogix as the first outside investor. Our background as global business builders in supply chain, and our unique viewpoint as a group of operators, strategic advisors and investors focused exclusively in logistics, will allow us to help ReverseLogix continue to extend its market leadership in what we believe is a trillion-dollar reverse logistics market globally," said Benjamin Gordon, Cambridge Capital's Managing Partner.
"ReverseLogix's continuous growth with existing and new large customers, top-tier satisfaction with the most important customers globally, and best-of-breed cloud-native flexible technology platform are a validation of ReverseLogix's large market opportunity and excellent product-market fit," added Matt Smalley, Principal of Cambridge Capital.
Leveraging AI and machine learning to automate and optimise the reverse logistics process brings the opportunity to significantly reduce operational costs and increase customer satisfaction while enhancing visibility and remaining both customer and customs compliant. It's reverse logistics done right.
Canoo Awards Manufacturing Contract to VDL Nedcar
Canoo, a trailblazing company in the electric vehicle (EVs) manufacturing industry, has officially announced owned and contract manufacturing plans that will ensure the company manages to deliver on its promise to consumers of production and delivery of vehicles in Q4, 2022.
During the company’s first Investor Relations Day, Chairman & CEO of Canoo, Tony Aquila, named VDL Nedcar as its contract manufacturing partner. VDL Nedcar, which I’m sure many of you will already have heard of, is the only independent Vehicle Contract Manufacturer in the Netherlands and has enjoyed fifty years of growth under owners, including Mitsubishi Motors and Volvo cars. According to the report, Nedcar will manufacture the Lifestyle Vehicle for the United States and European Union markets, while Canoo builds a US-based mega micro-factory.
"We conducted an exhaustive search, invested significant amounts of time and resources that span the globe, in our search for our Phase 1 contract manufacturer. VDL Nedcar is the right partner," said Tony Aquila, Investor, Chairman and CEO of Canoo, Inc. "They are the top trusted European manufacturer building high-quality products for leading OEMs, and they significantly outcompeted the other contenders. VDL is also independently owned by the van der Leegte family of entrepreneurs - which aligns with our commitment to support businesses that form the backbone of communities. This strategic partnership will enable us to deliver vehicles to market while we build our Phase 2 factory in Oklahoma. It also strongly positions us for geographic expansion in Europe and builds a lasting relationship with VDL Groep of companies. Our investment will help us scale quickly and fulfil our mission to bring affordable, purpose-built EVs to Everyone."
Canoo and VDL have already gotten to work on vehicle manufacturability and production planning so that Canoo can successfully lay the groundwork for its upcoming US manufacturing operations expansion, which will be completed in Oklahoma in 2022. The Nedcar facility currently expected to produce around 1000 units for both the US and European markets in 2022, with an additional 15000 targeted for the following year.
"Canoo's bold approach to designing and building electric vehicles makes them an ideal partner as we work together to shape the future of mobility," said John van Soerland, CEO of VDL Nedcar. "This partnership advances our strategic vision to provide a contract manufacturing solution and expand our expertise in the EV arena."
Currently, Canoo is entering its GAMMA phase of development and is on track to start production soon. The company intends and expects to launch its Lifestyle Vehicle in Q4 2022, closely followed by the Multi-Purpose Delivery Vehicle and Pickup Truck.
Watch this space.