The Denver startup Two Boxes this week landed $3.2 million in funding for its artificial intelligence (AI)-powered returns processing technology product, saying the fresh capital will enable it to advance its product roadmap and more aggressively engage the enterprise segment, including 3PLs and retailers in markets outside of North America.
Specifically, Two Boxes said it would accelerate its AI-powered returns intelligence capabilities for the retail, direct to consumer (DTC), and business to business (B2B) segments. The firm says its technology offers intelligent automation, including image classification, anomaly detection, and fraud identification.
That approach helps enterprise logistics providers to improve operational efficiency, accelerate inventory restocking, and help their clients combat fraud, ultimately preventing loss and retaining revenue, the firm said.
The investment was led by Assembly Ventures, a Detroit-based venture capital firm focused on mobility technologies, with continued participation from returning investors, including Peterson Ventures and Matchstick Ventures. It brings Two Boxes’ total funding to $13 million.
“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.”
One user of the firm’s technology is Radial, a third party logistics provider (3PL) that has integrated Two Boxes into its fulfillment network as part of a broader commitment to modern, data-driven returns management. “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.”
