Helsinki-based recommerce startup Renow has secured €1.8 million in seed funding to expand its AI-driven platform for handling product returns and second-hand goods across Northern Europe. The round was led by Greencode Ventures, with participation from Superhero Capital and Street Smart Capital. Renow’s service enables merchants to process and resell returned products through a combination of software tools, remote inspections, and partnerships with local third-party logistics providers. The funding will be used to open new processing hubs in Sweden and Norway, support market entry in Denmark and the Benelux, and grow the company’s product and sales teams. By decentralizing returns and resale operations and automating key steps like quality grading and product listing generation, Renow aims to reduce processing time and cost for ecommerce retailers operating in a market where returns and second-hand trade account for over €160 billion annually.
Renow offers merchants a complete solution for product returns, encompassing remote inspections, grading, and resale. This service eliminates the need for merchants to invest in their own infrastructure. Its freemium software tools and third-party logistics (3PL) network enable merchants to process returns locally and resell them quickly through Renow’s marketplace or whitelabel outlet platforms.
Renow’s platform uses agentic AI to support merchants throughout the entire return and resale process. It helps customers initiate returns by collecting accurate data, assists warehouse teams in quality grading, and generates detailed product cards for resale. This AI layer reduces manual effort, providing merchants with faster turnaround times and improved control over inventory.
“Returns are a massive operational challenge for retailers. Returned products often spend months in warehouses, require manual quality grading, and are sold in bulk at poor prices. This means merchants lose money, and consumers don’t get access to nearly new products. Our vision is to eliminate middlemen in the traditional second-cycle supply chain and make recommerce mainstream. Our logistics process, AI-assisted quality assessment, and resale platform turn returns from a headache to a viable and cost-efficient opportunity for ecommerce platforms,” says Kalle Koutajoki, CEO and co-founder of Renow.
The European product return and second-hand market exceeds €160 billion annually, combining an estimated €70–80 billion in ecommerce returns and €94 billion in second-hand goods. Renow addresses both segments by helping merchants reduce turnaround time and resell open-box products through a curated outlet, where product descriptions are verified through the AI product quality grading process. Items are resold with standard buyer protections, including a 12-month warranty. The company’s platform also offers trade-ins, allowing customers to sell their own products for discounts on new items or receive cash returns.
The company’s approach contrasts with traditional models that centralize logistics or rely on bulk resale to wholesalers. Instead, Renow supports decentralized processing through local third-party logistics hubs, giving merchants significantly faster turnaround and less waste. This positions it as a differentiated alternative to competitors like Foxway, with faster time-to-market and flexible resale options, without large logistical overheads from its own logistics and warehousing operations.
“The circular economy is vital for reducing waste, and Renow addresses this by efficiently re-selling returned goods. With a strong focus on electronics and hard goods, Renow’s deep supply-side integration and automated operations position it well for the rapidly growing recommerce market, particularly in the Nordics,” says Terhi Vapola, Founder & Managing Partner at Greencode Ventures.
Renow already supports well-known Nordic retailers and marketplaces with operations in Finland, Sweden, Norway, and upcoming launches in Denmark and the Benelux.
Renow’s model is designed to extend product lifecycles and promote reuse, while also focusing on building the infrastructure that makes recommerce commercially viable for merchants. The company is currently growing 6x year-over-year. The new capital will be used to expand Renow’s platform and logistics partner network, as well as to grow its sales and product teams across Northern Europe.
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Read the orginal article: https://arcticstartup.com/renow-raises-e1-8m-seed/
