Global-e Acquires ReturnGo to Enhance Ecommerce Returns Experience

Global-e Online, an Israeli ecommerce platform, has acquired ReturnGo, a startup that provides an AI-based platform for efficiently managing returns and exchanges of products purchased on ecommerce sites. The acquisition will enhance Global-e's solutions for automating return and exchange processes, allowing merchants to provide better experiences, improve satisfaction, and strengthen customer loyalty. Financial details were not disclosed.

Israeli ecommerce platform Global-e Online (Nasdaq: GLBE) has announced the acquisition of Israeli startup ReturnGo, which specializes in AI-based solutions for managing returns and exchanges. The acquisition aims to enhance Global-e's offerings, providing merchants with more efficient and flexible return processes.

ReturnGo, founded in 2020, has developed a platform that uses artificial intelligence to streamline return and exchange processes. The company has raised $11.3 million in funding since its inception [1]. Global-e, known for its cross-border e-commerce solutions, aims to integrate ReturnGo's technology into its platform, thereby improving the post-purchase experience for merchants and consumers alike.

Nir Debbi, President of Global-e, stated, "Returns are a key aspect of the online shopping experience, especially in global commerce. This acquisition will enable us to provide our merchants with a better solution to deliver enhanced experiences, improve satisfaction, and strengthen the loyalty of their customers" [2].

Aviad Raz, Co-Founder and CEO of ReturnGo, added, "By joining forces with Global-e, we're amplifying our mission to make returns smarter, faster, sustainable, and more valuable for merchants and consumers alike. We're proud of what we've built, and we're even more excited for what comes next" [2].

The acquisition is not expected to have a material impact on Global-e's revenue or financial results. Global-e reported its first-quarter earnings, which exceeded market expectations, posting an adjusted EBITDA of $31.6 million and a non-GAAP gross margin of 46.6% [2]. The company also announced a strategic partnership with Shopify, which has been a focal point for investors.

Global-e's share price fell 0.2% on Wall Street on Thursday and a further 5.2% on Friday, reaching $31.42, giving a market cap of $5.3 billion [1]. The company held its IPO in 2021, with a valuation of $3.6 billion, and at its peak, its market cap was $11 billion [1].

References:
[1] https://en.globes.co.il/en/article-1001517896
[2] https://www.investing.com/news/company-news/globale-acquires-returngo-to-enhance-ecommerce-return-solutions-93CH-4162960