Two Boxes has raised $3.2 million in a funding round led by Assembly Ventures, as it looks to address one of the most persistent challenges in e-commerce—returns management and fraud.
With this round, the company’s total funding now stands at $13 million. The fresh capital will be deployed to expand its product roadmap and strengthen its presence among enterprise customers, particularly across retail, direct-to-consumer, and B2B segments.
Founded to modernize reverse logistics, Two Boxes is already processing close to $1 billion worth of returned inventory annually across three continents. It works with major logistics and fulfillment providers such as Radial, Stord, and Cart.com.
The platform leverages AI technologies including image classification and anomaly detection to assess returned goods. This enables warehouse teams to make faster and more consistent decisions on whether items can be restocked, repaired, or flagged for potential fraud.
According to Kyle Bertin, the growing demand from enterprise customers reflects a broader shift in how organizations view returns processing—as a critical operational function rather than a back-end cost center. The company is also expanding beyond its initial DTC focus into retail and B2B returns markets.
Rising return volumes and fraud are placing increasing pressure on retailers. The company notes that return volumes in the U.S. have grown at twice the pace of overall e-commerce since 2020, while returns-related fraud has accelerated at four times that rate.
Two Boxes’ platform is designed to address key operational challenges, including identifying fraudulent returns, detecting manufacturing defects through inspection data, and improving margins by enabling faster and more accurate processing of returned inventory.
These capabilities are particularly relevant for third-party logistics providers and large retailers managing high return volumes across distributed fulfillment networks.
The platform has already been integrated into operations at companies like Radial, where it is being used to streamline returns workflows and accelerate inventory recovery, highlighting its growing role in optimizing reverse logistics at scale.
