Two Boxes Secures $3.2M Funding to Expand AI Returns Processing Network

Key Details Two Boxes, an AI-powered returns management platform, has closed a $3.2 million funding round led by Assembly Ventures. The raise brings total funding to $13 million and will support product expansion and enterprise customer acquisition across retail, DTC, and B2B segments. Why It Matters Returns processing has become a major operational headache for logistics providers and retailers. U.S. return volumes have grown twice as fast as overall e-commerce since 2020, while fraud-related losses are climbing even faster at four times that growth rate. What Two Boxes Does The platform uses AI-driven image classification and anomaly detection to inspect returned goods at scale. It helps warehouse teams make faster, consistent decisions on whether items can be restocked, repaired, or flagged as fraudulent. The company already processes nearly $1 billion in returned inventory annually across three continents. Market Opportunity Two Boxes partners with major logistics providers including Radial, Stord, and Cart.com. CEO Kyle Bertin emphasized that returns processing is a critical, often underserved function in modern supply chains. Returns have become what investors call a margin battleground, giving AI-powered solutions significant growth potential for logistics professionals.