Redo Raises $24 Million Series A
Redo, a Draper-based E-Commerce platform co-founded by Tay Brown and Sterling Snow, announces its $24 million Series A investment led by Pelion and joined by a long list of prominent Utah-based investors.
Money
August 20, 2024, Draper, Utah
E-Commerce platform Redo has raised a $24 million series A round, led by Pelion Venture Partners.
EPIC Ventures, Kickstart Fund, and Tandem Venture Partners joined the round as institutional investors. Blake Murray, Alex Bean, Adam Edmunds, Ben Dahl, Jeremy Andrus, Mav Carter, Nate Walkingshaw, Jeff Burningham, and Jeron Paul joined as angel investors.
Cervin Ventures and AGLAÉ VENTURES (the venture arm of LVMH) also participated. Current Redo customers that resonated with Redo's vision also invested, including Mary and Taylor Moody (Made by Mary), Connor MacArthur (Mission Belt), Aaron Dalley (Enso Rings) and over a dozen others.
Sterling Snow (Co-Founder and CEO) mentioned the Series A investment in an August 20, 2024 LinkedIn post. He sat down with TechBuzz to describe Redo's free platform offering for brands.
"Our software handles the automation of a merchant's returns, exchanges, in-store credits, support tickets etc. It makes it easy for brands to focus on what they like to do, which is, building a business, and not dealing with the headaches that come with the 'problem children,'" Snow told TechBuzz.
"Its free software that fixes the 'shopper problems' is the way that we're winning," Snow added.
While its software is free to merchants, Redo makes money on the usage that flows through the platform.
The startup is now working with about 1,500 different brands, many of them based in Utah, but most of them out of state, especially in New York, Texas and California. The company worked closely with their brands to craft a solution that addresses the key problems brands face: dealing with the returns, exchanges, etc.
"Our relationship with our brands is very close and collaborative," said Snow. "In a lot of ways, they make our job easy, because they tell us what we need to build. It's our job to go deliver on it."
Snow described in his LinkedIn post how Tay Brown originated the basic concept of the startup. He said Brown "dog-fooded his idea, built an MVP, raised a seed round, and started adding the first customers. And I started to fall in love, the market was huge, the monetization model was different, the product was different, and the opportunity to build a platform was real. A new category was being created."
Brown described in detail how he connected with Pelion in a compelling LinkedIn post from yesterday. He and Snow worked together on the idea for three months. Snow officially joined Redo as a co-founder and CEO in September 2023.
Snow's background includes a rapid rise over nearly five years at Divvy (now Bill) to become the company's Chief Revenue Officer from January 2019 to June 2021—a period of rapid growth. Divvy was valued at approximately $2.5 billion when it was acquired by Bill in May of 2021.
In his LinkedIn post Snow described the idea behind Draper-based Redo and its similarity to his previous employer, Divvy: "On the surface Divvy and Redo have nothing in common, but as you peel back the layers the similarities are hard to miss: 1. Huge market; 2. Free software fixing a painful/expensive problem; 3. Usage based monetization; 4. Similar Go-To-Market; 5. Consolidation of point solutions to create a platform."
The other similarity is the team. Snow has assembled a handpicked team of (mostly) former Divvy All-Stars: Eric Lepretre, Aaron Evett, Jordan Bleak, Jared Cahoon. About the team he said, "...this team is the very best one I’ve ever been a part of."
Redo launched its platform in January 2023. The company is based in Draper, in the same building as Pelion, and has 73 employees.
Snow will remain a Venture Partner at Pelion.
