ShopRunner is a subscription-based digital shopping service that partners with mid- to high-end retailers to provide paying members free two-day shipping and free returns, taking a small cut of each purchase. Under CEO Sam Yagan (who joined in 2016) the company moved from Silicon Valley to Chicago and recently posted its first profitable year. ShopRunner announced a $40M investment to fund product development, data science and an accelerated M&A strategy, and has confirmed the acquisition of shopping app Spring (platform + 30 employees). The company says the deal multiplies the number of brands available to members by ten and for the first time offers a centralized marketplace with access to hundreds of brands. ShopRunner has raised around $140M in equity funding since its 2009 founding, and Yagan described its valuation as being in the “hundreds of millions” while declining to disclose deal terms. ShopRunner is a San Mateo, CA–based, membership-based online shopping service founded in 2010 by Michael Rubin. The company connects retailers and brands to shoppers via exclusive member benefits and targeted, data-driven marketing. It is led by CEO Scott Thompson and COO/CFO Scott Simmons. ShopRunner currently has over 3.5 million members and a network of about 150 retail sites, including Neiman Marcus, Saks Fifth Avenue, Ralph Lauren, Tory Burch, Kate Spade, American Eagle, and Under Armour. The company intends to use financing proceeds to expand its member base and retail partner network. No revenue or other financial metrics were disclosed in the article. ShopRunner operates a subscription-based e-commerce service that offers free two-day shipping, free returns, and no minimum order size for a $79 annual fee. The platform hosts company storefronts for thousands of brands, including American Eagle, Anne Klein, Brooks Brothers, Domino’s, ESPN, GNC, MLB, and the NBA. Its business model is compared in the article to Alibaba’s Tmall, which manages e-commerce operations for many companies. Financially, the company was valued at about $600 million following the reported investment. As part of the transaction, eBay sold its roughly 30% stake for a profit, while Yahoo continues to own about a quarter of ShopRunner. The article does not report revenue or user counts.

Total raised

$246M

Funding rounds

3

Latest round

Equity

Latest activity

Oct 2018