Toronto-based Loopt, a circular economy software company focused on retail verticals, has secured C$1.7 million in a pre-seed financing. The round was led by Columbus Capital, with participation from Kirsten Chapman, former president of Indigo Canada, and existing investors Gemini Waghmare, Jay Deen and Jeff Smith.
loopt™ Closes $1.7 Million Investment to Power Retailers to Enter the Circular Economy
TORONTO, May 11, 2021 /CNW/ – This morning, loopt™, a Toronto-based software company that powers the circular economy across retail verticals, announced that it has raised a $1.7 million pre-venture seed financing that was led by Columbus Capital with support from Kirsten Chapman, former President of Indigo Canada and existing investors Gemini Waghmare, Jay Deen and Jeff Smith. loopt™ will use the funding to continue development of its proprietary platform that enables retailers to participate in the circular economy via fully customizable rental subscription programs.
“The sharing economy is set to reach $335 billion by 2025,” said Kelly Pigeon, CEO and Co-Founder at loopt™. “This space is currently dominated by peer-to-peer transactions, leaving a huge opportunity for retailers to get skin in the game. The loopt™ platform takes the unique considerations of the circular economy and unlocks the ability for retailers to run their own, full branded circular service. We’re excited to grow the platform and help make a positive impact with more brands this year.”
In addition to the growth of the sharing economy, the world of retail has seen a massive shift over the last year and is craving innovation. Foot traffic is at an all time low and many brands who previously depended on brick-and-mortar for the bulk of their sales saw dips in revenue by almost 33%. Pairing new shopping realities with almost half of shoppers (47%) looking to spend their money on environmentally friendly brands, retailers are looking for innovation to meet consumers where and how they want to shop.
“We’re at a pivotal point in the world of retail,” said Kirsten Chapman, former President of Indigo Canada. “The pandemic has pushed brands to take a critical look at evolving their channel strategy to win with new shopping realities, but also how innovation can deliver on corporate sustainability goals. The future of retail will lie in a brand’s ability to successfully marry digital and sustainable practices which can be achieved through the circular economy. It meets the needs of the consumer, the business and the planet.”
“In the last year alone, ecommerce grew by 44%. We have also seen a rise in global businesses publicly declaring environmental goals. There’s a clear need and demand for a sustainable solution such as loopt™,” said Brendan Paddick, CEO of Columbus Capital. “I’m excited to invest in a Canadian, female-led business that is pushing forth innovation that will have meaningful global impact.”
This announcement marks the third successful financing round for loopt™ as the company continues to expand its platform offering within the circular economy.
loopt™ is a re-commerce platform that enables retailers to enter the circular economy. Headquartered in Canada and founded in 2018, loopt™ has raised over $2.4 million in financing. For more information, please visit www.looptplatform.com.