Recommerce company FloorFound has gotten $10.5 million in Series A financing, a press release said Thursday (May 19).
The funding will go towards expanding the Austin, Texas, company’s market presence in the U.S., and also add new retail verticals for appliances, mattresses and exercise equipment.
The money comes as there’s been more interest in the recommerce solution, or the recovery and resale of lightly used or returned items that have been removed from the box.
“Consumer demand for sustainability, coupled with a strained supply chain and growing inflation, has pushed recommerce and resale to the forefront of retail,” said Chris Richter, founder and CEO of FloorFound.
He added that FloorFound is making it easier for companies to implement recommerce programs and deal with oversized items.
The funding round was led by Next Coast Ventures and LiveOak Venture Partners with participation from previous investors, FlyBridge Capital Partners, Schematic Ventures, and new investor Data Point Capital.
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PYMNTS wrote that FloorFound has been trying to work sustainably, noting on its website that the U.S. Environmental Protection Agency estimates that there’s over 9 million tons of furniture going to a landfill per year.
“Over 2.1 million tons of appliances are also disposed of,” the site said. “And much of that waste is comprised of like-new open-box items.”
To that end, the company has partnered with Inside Weather, a sustainable furniture manufacturer, as of February this year, which will divert almost 10,000 pounds of sectionals, sofas and side chairs from landfills.
The announcement came in sync with Earth Day, which PYMNTS notes has been a rallying point for businesses to work on more environmental, social and governance (ESG) goals, which have been increasingly important for customers and their purchasing decisions.
The report said ESG has become a more pervasive issue all around, including bolstering recommerce, which has surged in marketplaces and eCommerce sites.
