$3.2M Round Brings Total Funding to $13M as Capital-Efficient Platform Scales to $1B in Inventory Value Processed Across Three Continents

DENVER–(BUSINESS WIRE)–Two Boxes, an AI-powered returns processing technology platform, today announced the closing of a $3.2 million fundraise led by Assembly Ventures, a Detroit-based venture capital firm focused on mobility technologies, bringing total funding to $13M. The round also saw continued participation from returning investors, including Peterson Ventures and Matchstick Ventures, both of whom previously backed the company and doubled down on their conviction in Two Boxes’ product, team, and market opportunity.

The demand we’re seeing from enterprise accounts like Radial reflects a broader market reality: returns processing is a critical, often underserved function in modern logistics.Share

This strategic injection of capital will enable Two Boxes to advance its product roadmap and more aggressively engage the enterprise segment, building on a period of significant growth that saw the company onboard two 3PLs per month and one new merchant per day in 2025. As a result, Two Boxes is processing almost $1B in returned inventory value across three continents annually, and serving some of the largest names in logistics and retail. The new funding will specifically accelerate the company’s AI-powered returns intelligence capabilities for retail, DTC, and B2B segments.

Fueling the Next Phase of Growth

Two Boxes has established itself as a trusted technology partner for some of the most demanding logistics and fulfillment operations globally, including enterprise accounts like Stord, Cart.com, and Radial. In addition to accelerating Two Boxes’ vision for AI-enabled reverse logistics, the latest round will support more aggressive efforts to support enterprise 3PLs and retailers in markets outside of North America.

“The demand we’re seeing from enterprise accounts like Radial reflects a broader market reality: returns processing is a critical, often underserved function in modern logistics,” said Kyle Bertin, Co-Founder & CEO of Two Boxes. “This raise gives us the runway to continue meeting that demand head-on while accelerating our roadmap to serve not just DTC returns, where we’ve seen strong success, but also the B2B and retail returns segments that represent a significant and growing opportunity in North America and beyond.”

“AI-powered image classification, anomaly detection, and automation aren’t features we’re bolting on, they’re central to how Two Boxes delivers value at scale,” said Evan Stalter, Co-Founder & CPO of Two Boxes. “This funding accelerates the intelligence we’re giving every associate, anywhere in the world, to make better, faster decisions on every return with less fraud. That’s what makes this platform defensible.”

Powering Operational Excellence for Enterprise Partners

Radial, a leading 3PL set to become Paxon later this year, has integrated Two Boxes into its fulfillment network as part of a broader commitment to modern, data-driven returns management. The partnership exemplifies how enterprise logistics providers are leveraging Two Boxes to improve operational efficiency, accelerate inventory restocking, and help their clients combat fraud, ultimately preventing loss and retaining revenue.

“Technology like Two Boxes enables Radial to better meet the demands of modern retail,” said Shauna Bowen, EVP, Chief Digital & Transformation Officer at Radial. “Two Boxes meaningfully improves operational efficiency across our network, gets more inventory back to stock faster, and helps our clients combat fraud. The result is less waste and more retained revenue for the brands we serve. We’ve seen this firsthand. Two Boxes was part of the technology powering the recent brand launch, SYRN, a testament to the platform’s ability to perform at scale from day one.”

Assembly Ventures Leads Round

Assembly Ventures, an existing investor in Two Boxes, is leading this round, underscoring the firm’s conviction in the company’s technology, leadership, and the scale of the opportunity ahead. The global returns market is experiencing rapid growth, driven by rising e-commerce volumes and increasing consumer expectations for seamless, flexible return experiences. However, that growth has also fueled a surge in returns-related fraud. Since 2020, U.S. returns volumes have grown at 2x the rate of e-commerce overall, while returns-related fraud has increased at 4x that pace, creating significant operational and financial challenges for retailers.

“The need for AI-powered returns processing technology has never been more clear. Returns used to be a back-office function. Today, they’re a margin battleground,” said Sujoy Sarkar, Director & Head of Silicon Valley Office at Assembly Ventures. “Two Boxes is building the modern returns infrastructure for a new era of e-commerce, where 3PLs and retailers must process returns efficiently, reduce fraud, and protect margins simultaneously.”

About Two Boxes

Two Boxes is an AI-powered returns processing technology platform purpose-built for the demands of modern commerce. By combining intelligent automation, including image classification, anomaly detection, and fraud identification with a flexible platform that enables any associate to process any return for any retailer globally, Two Boxes helps 3PLs and brands drive operational efficiency, recover inventory faster, and reduce fraud and revenue loss. The company serves leading enterprise accounts across DTC, B2B, and retail verticals. For more information, visit www.twoboxes.com.

About Assembly Ventures

Assembly Ventures is an early-stage venture capital firm that invests in, and strategically supports, the entrepreneurs and mobility companies moving the Western world. Founded in 2020, Assembly is deeply rooted in industrial and innovation centers across North America and Europe and is headquartered in Detroit, Michigan. It is led by a team with decades of best-in-class investment and operating experience in the mobility, technology, and automotive sectors. For more information, visit www.assemblyventures.com.

Contacts

Media Contact: Jack Hutchinson | jack@twoboxes.com | 6147900023

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