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DTC logistics startup Swap raises Series A

Illustration of a conveyor belt with packages surrounded by shapes and dollar elements.

Illustration: Gabriella Turrisi/Axios

Swap, a SaaS platform managing supply chain logistics for DTC retailers, raised a $9 million Series A, co-founder Sam Atkinson tells Axios.

Why it matters: The startup helps online retailers manage returns, which amounted to $212 billion worth of products in 2022, and reduce losses tied to return fraud.

By the numbers: In 2023, annual recurring revenue (ARR) grew from zero to $2 million. Swap anticipates revenue will hit $10 million this year.

  • By December 2024, the company expects to have a revenue run rate of $18 million to $20 million, or $1.5 million per month.
  • With a 45% to 50% net gross margin, Swap also makes a profit on insurance and shipping.

How it works: "It's tech-enabled 3PL (third-party logistics), but without the warehouses," Atkinson explains.

  • With Swap's cross-border offering, duties, taxes and fees are completed at checkpoints to improve cart conversion.
  • Its software handles tasks like global tax filing, duty drawbacks, and localized tax and VAT filing by country on international shipments.
  • Swap also provides a way to conduct returns and exchanges or offer store credit in part by handling all direct relationships with carriers, insurers and recycling partners.

Zoom in: The Series A was led by QED Investors, with participation from Cherry Ventures, 9900 Capital, 2100 Ventures and Klaviyo co-founder Ed Hallen.

  • The term sheet was signed in November, and Swap received the funds earlier this year, Atkinson says.
  • The capital will support the launch of Swap Global, which provides DDP shipping, automated tax remittance and express customers clearance.
  • Some of the cash will be invested in expanding its marketing and sales teams to broaden its presence in the U.K., Europe and the U.S.

Catch up quick: The company previously raised a €2.2 million seed round in early 2023, led by Cherry Ventures.

The latest: The company named Juan Pellerano Rendón, who recently oversaw Swap's rebranding, as the company's first CMO.

What's next: Swap hopes to partner with marketing agencies and provide more analytics in marketing, finance and operations.

Editor's note: This story was corrected to omit Zalando CEO David Schneider from the list of Series A investors.

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