Loop Commerce offers an alternative checkout that enables shoppers to buy gifts by using a recipient’s email instead of SKU or shipping address, allowing recipients to choose final products and enter shipping details. The product is sold as a software-as-a-service and Loop charges a percentage on a per-transaction basis. Retail customers report the feature drives incremental revenue, with retailers seeing a 20% increase in average order value, 52% of gift recipients as new customers, and roughly a quarter of gift givers as new customers. Six out of 10 purchases handled by the system are hard-to-gift items (shoes, cosmetics, apparel and accessories), and retailers report roughly twice as many transactions from male shoppers. The company says “hundreds of thousands” of consumers have interacted with the product since launch and it has over half a dozen large enterprise customers including Macy’s, Lancôme, Urban Decay and others. Future plans include a premium business intelligence product for retailers, imminent mobile web support, and continued hiring and product development. Loop Commerce offers a B2B2C gifting service that integrates with retailers as an alternative checkout flow, allowing shoppers to notify recipients and collect shipping, sizing, and color preferences. The product aims to reduce returns and provide additional user behavior data to retailers while improving gifting outcomes for consumers. The company has been in private beta since its launch in November and has added undisclosed merchants to its test roster, but has not set a date to open the service to retailers. Loop closed a Series A in early November that was previously $7 million and subsequently added an investment from PayPal, bringing the round to a little north of $12 million. Investors include PayPal, eBay CTO Mark Carges, Don Katz (Audible/Amazon), Magento CEO Roy Rubin, former Toys “R” Us SVP Michael Scharff, Oren Zeev, Chegg CTO Chuck Geiger and Novel TMT; PayPal VP Don Kingsborough will serve as PayPal's observer on Loop's board. CEO Roy Erez said the team built the product to work with the largest retailers and noted it's too soon to comment on the nature of the relationship with PayPal.

Total raised

$21M

Funding rounds

2

Latest round

Equity

Latest activity

Apr 2015