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.
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.
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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.
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.
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.
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