LONDON: January 22, 2019. Circularity Capital is leading a multi-million growth fund round in ZigZag, a SaaS platform that enables retailers to reduce the costs and associated waste of returns by improving and simplifying the process.

Global e-commerce return volumes are growing at 10-20 percent per annum, says the company. In the US market, 2.5 million tons of returned goods end up in landfill, the waste equivalent from five million Americans.

Circular awards davis 2019ZigZag grades returned products and can consolidate, refurbish, locally redistribute, recycle or even resell stock internationally.

The company says its system reduces parcel journeys by up to 65 percent by identifying opportunities for the repacking and redistribution of returned products within the country of delivery. This produces a measurable reduction in the wastage and carbon footprint associated with retail returns.

ZigZag also reduces the cost and transit time of returns and customer-related service enquiries by 40 percent.

Circularity Capital partner Ian Nolan has joined the ZigZag Board: “[It] has developed a powerful solution for retailers to addressing the growing challenge posed by e-commerce returns," he said. Our investment in ZigZag is highly aligned with Circularity’s focus on using the circular economy to identify opportunities to drive financial value creation in parallel with positive environmental and societal impact.”

Al Gerrie, CEO and founder of ZigZag commented: “Circularity Capital’s investment will play a key role in fueling our market growth. In addition to allowing us to reach more customers, the funding will allow us to further develop our product offering to deliver even more value for retailers. We placed significant emphasis on bringing on board an investor who brings more than just capital to the table – [its] specialist network and insight in the circular economy was a great fit for us in this regard.“

The investment in ZigZag is the third investment of Circularity Capital’s debut fund. It follows investments in Winnow, a business providing a solution to dramatically reduce food waste; and Grover, a company offering flexible “access over ownership” to technology products.

The fund targets equity investments in growth stage European businesses that are enabling the circular economy. Investors include AXA Investment Managers, BNP Paribas Fortis, Henkel and Philips.