toern Secures Over 1 Million Euros in Growth Capital for Returns Management

The Cologne-based startup toern has closed a funding round of more than one million euros. The company is developing an AI-based platform for returns management in e-commerce and plans to use the new capital to accelerate its growth and the further development of its technology.

toern was founded in 2023 by Alena Schneck and Jonas Hoffmann. The startup addresses one of the biggest cost and efficiency factors in online retail: returns. While many retailers still view returns as an unavoidable cost, toern relies on data-driven analytics and automated processes to reduce returns while improving customer satisfaction.

According to the company, toern was able to establish itself in the market as a specialized provider within a short period of time. The startup now collaborates with numerous e-commerce brands and is increasingly benefiting from word-of-mouth recommendations within the industry.

Investors from the e-commerce and startup scenes participate

Participants in the funding round include Venture League, business angels Volker Rofalski and Martina Pfeifer, and industry experts Arndt Brockmann, Alexander Gedat, and Daniel Müller.

As early as 2024, Felix Liebelt, Dr. Jill Küberling-Jost, Jens Schumann, and Ole Schneikart, among others, had already invested in the company, thereby supporting its early development. The investors see returns management in particular as a previously underestimated driver of profitability, customer loyalty, and sustainable growth in online retail.

Returns: A Billion-Dollar Problem in E-Commerce

Returns incur costs in the billions annually in European online retail. In addition to the logistical burden, returns also strain retailers’ margins, warehousing, and sustainability goals. The toern platform analyzes reasons for returns, identifies patterns, and helps retailers proactively prevent returns. At the same time, it aims to make existing returns processes more efficient.

With the new capital, the startup plans to further expand its market position and advance the platform’s technology. Given rising costs in e-commerce and growing demands for profitability, the topic of returns management could increasingly come into focus for retailers and investors in the coming years.