Washington, D.C.-based Optoro has landed a partnership with IKEA.
Nine-year-old Optoro manages a platform that uses data analytics to help brands determine the best way to sell off excess inventory. The company’s platform leverages data science and machine learning to manage and optimize returned inventory, aiming to reduce financial and operational burdens.
Through this partnership, Optoro’s platform will be implemented at 10 IKEA distribution centers, 50 retail stores and IKEA’s Customer Support Center in the U.S. The pair are exploring the potential to expand to more markets, according to a press release. Ultimately, IKEA wants to reduce its waste from returned items.
“We’re on a mission to become a circular business by 2030, and we need partners like Optoro who can help us achieve our goals,” said Javier Quiñones, president and chief sustainability officer of IKEA Retail U.S., in a statement. “Optoro’s solution will enable us to eliminate much of the waste created in the reverse supply chain, from minimizing the carbon emissions released in return shipping to finding the best next homes for returned items.”
Financial terms of the partnership were not disclosed.
This partnership comes after Ingka Group, one of 11 organizations that own a part of IKEA Retail U.S., participated in a previous funding round for Optoro through its venture arm, Ingka Investments. Optoro also recently added three C-suite executives to its team that includes a new CFO, CTO and SVP of product.
“We are thrilled to partner with IKEA Retail, a global leader in designing a more sustainable retail future,” said Tobin Moore, CEO and cofounder of Optoro.”“IKEA shares our mission of looking to innovation and technology to build the circular economy. Through our work together, we will be able to make an even larger impact on reducing waste from returns, while also improving the customer experience to help fuel ecommerce growth.”
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