Press release

Happy Returns Announces Strategic Investment from PayPal to Accelerate Sales and Product Development

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Sponsored by Businesswire

Happy Returns, a leading provider of return and logistics solutions for
retailers and their customers, today announced a strategic investment
from PayPal (Nasdaq: PYPL) as part of an $11M financing round. The two
companies share a commitment to reducing friction from the entire online
shopping experience for retailers and their customers, from
consideration and purchase through fulfillment and possible return and
exchange.

“Our mission is to make returns more delightful for consumers, more
cost-effective for retailers, and more sustainable for the planet,” said
David Sobie, co-founder and CEO at Happy Returns. “We’re thrilled to
work with PayPal to make the process of returning more seamless for
shoppers and our service more broadly available to PayPal’s large
network of merchants.”

Returns of online purchases represent a major challenge and opportunity
for retailers. Items purchased online are three to four times more
likely to be returned than in-store purchases, and the traditional
online return process of packaging items individually and shipping them
via carrier is cumbersome, wasteful, and expensive for retailers and
customers alike.

Happy Returns’ Full Stack Returns is a combination of software,
services, and logistics that enables retailers to offer a best-in-class
return experience, including the ability to return products in-person
through Happy Returns’ nationwide network of Return Bar locations, as
well as through the retailer’s own stores, or by carrier. With in-person
returns, items are aggregated at the start of the process, resulting in
a return that is immediate and hassle-free for shoppers, and more
efficient and cost-effective for retailers. Happy Returns’ Net Promoter
Score® of 95 is among the highest customer satisfaction ratings of any
consumer-related service.

“Happy Returns has reengineered the return process with the customer in
mind and that brings greater cost savings and efficiencies to
merchants,” said Robert Clarkson, Vice President, North America at
PayPal. “Working with Happy Returns will help us learn more about how
returns can decrease the friction in shopping online and how to help
merchants address this growing problem.”

Happy Returns has experienced rapid growth, expanding its network of
Return Bars® to over 350 locations in 63 metro areas by partnering with
national retail chains including Paper Source, Sur La Table and Cost
Plus World Market to offer its in-person returns service. Its Full Stack
Returns suite has been adopted by leading digitally native brands such
as Rothy’s, Everlane, and Parachute Home, and the volume of returns and
exchanges processed by Happy Returns has grown 800% year over year. To
support this growth, the company has opened two regional Return Hub
facilities in Blandon, PA and Van Nuys, CA for processing and
aggregating returns.

Existing investors U.S. Venture Partners and Upfront Ventures also
participated in the funding. Since its founding in 2015, Happy Returns
has raised a total of $25 million. The company employs 55 people and is
headquartered in Santa Monica, CA.

About Happy Returns:

Happy Returns provides comprehensive return solutions for the world’s
leading online and omni-channel retailers and their customers. With
Happy Returns’ Full Stack Returns, retailers offer customers a
best-in-class branded online return and exchange flow as well as the
maximum flexibility for returning purchases. Shoppers enjoy multiple
ways to return: in-person via Happy Returns’ nationwide network of 350+
Return Bar locations, through the retailers’ own stores, or by carrier.
Happy Returns provides aggregated shipping and logistics across all
channels with optimized disposition to destinations of the retailers’
choice; all with comprehensive reporting and analytics. The result is a
world class experience for customers (NPS® of 95) with maximum value for
retailers.

Happy Returns’ co-founders met at HauteLook/NordstromRack.com, where
they led the creation and launch of the highly successful Return-to-Rack
program, in which HauteLook and NordstromRack.com shoppers return online
purchases to Nordstrom Rack physical stores. Happy Returns is based in
Santa Monica, California and its investors include PayPal, USVP, Upfront
Ventures, and Lowercase Capital. For more information, visit www.happyreturns.com
or email info@happyreturns.com.