Exploring the (Re)vive Deal: How Recycling and Resale Drove 10x Growth

(Re)vive aims to address the fashion industry's significant problem of discarded returned items, which often end up in landfills despite being unworn or undamaged. In 2022 alone, an estimated 9.5 billion pounds of returns found their way to landfills, highlighting the urgency of finding a better solution. New York-based (Re)vive steps in to help retailers salvage these items.

The startup takes in products deemed unsellable due to damage and refurbishes them, whether through cleaning, repairs, or grooming. Once rejuvenated, these items are sold through various channels, including third-party platforms like eBay and Poshmark. (Re)vive's sophisticated data platform aids retailers in monitoring and managing their returned inventory, providing insights into potential revenue from salvaged items.

What sets (Re)vive apart is its efficient underlying technology. Using proprietary software, the company's employees can quickly assess and process boxes of returned items in just three minutes. This technology not only streamlines operations but also provides retailers with valuable data on returned SKUs and potential revenue.

The demand for (Re)vive's services is growing, driven by increasing pressure on retailers to address environmental concerns and minimize waste. Companies are facing greater scrutiny from investors and shareholders regarding their environmental impact and financial losses. Working with (Re)vive offers retailers a dual benefit: reducing environmental impact while improving their bottom line.

For retailers, partnering with (Re)vive is a straightforward process. They simply redirect their damaged items to (Re)vive's warehouses instead of sending them to landfills. This ease of integration makes it an attractive option for retailers seeking sustainable solutions without significant operational changes.

‍A Tale of a Meandering Journey

Boston Brand Media analyses why (Re)vive has experienced significant demand, with CEO Allison Lee revealing that the company's revenue surged nearly 15 times last year. However, reaching this point required several iterations of its business model.

Originally founded in 2017 as Hemster, offering in-store tailoring services, the company underwent a transformation after the pandemic halted its operations. Despite initial success, the team realized the need for a shift when their online repair portal intended for consumers was predominantly used by retailers seeking to refurbish inventory in their warehouses.

Since pivoting to its current model, (Re)vive claims to have saved companies $23 million in Gross Merchandise Value (GMV) and diverted 150,000 garments from landfills. Lee reflected on the journey, noting the transition from being perceived as a "nice-to-have" service to a "must-have" solution for retailers.

Securing $3.5 million in seed funding, led by Equal Ventures and Hustle Fund, (Re)vive initially hadn't planned to raise venture capital after its pivot. However, after being approached by Equal Ventures, which had extensively researched the category, the company decided to proceed with the funding round.

Lee's motivation stems partly from her firsthand experience dealing with returns and damages during her time as a sales associate at Anthropologie. She recalls witnessing countless items deemed unsellable due to minor imperfections, destined for the landfill despite being in near-perfect condition. With (Re)vive's mission to minimize waste, Lee hopes to make a significant impact in addressing this environmental challenge.

For questions or comments write to writers@bostonbrandmedia.com

Source: Techcrunch‍