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As holiday shopping season nears, female-founded Dropit snaps $25M to help brands mitigate excess inventory issues

Dropit-CEO

Dropit, a London-based omnichannel retail technology company that unifies brands’ physical and online inventories and distribution channels, has secured $25 million in a Series C funding round led by Vault Investments.

Existing investors, including Tiga Investments, Axentia, Sugarbee, and others, participated in the round. The company has raised a total funding of $50 million. 

The latest capital will help Dropit accelerate its go-to-market capabilities, extend its US sales office in Austin, Texas, grow its team to over 100 employees, and add key hires for open positions across 12 states.

Mitigating excess inventory issue

Founded in 2016 by Karin Cabili, Dropit has developed a platform to mitigate the issue of excess inventory and product waste impacting both retailers and the environment. 

According to National Retail Association, the buildup of excess inventory continues to plague the industry, with dead inventory in the United States alone costing retailers approximately $50 billion annually. 

Typically, brands have a limited view of their inventory across segregated sales channels and no solution for carrying and distributing inventory. This results in significant forfeitures of sales when online and in-store inventory is kept separate. 

Brands often route excess products to landfills or burn them, creating 2.9 million tons of landfill waste, leading to increased pollution.

“Some of the biggest headaches retail faces today boil down to brands keeping their in-store and online inventory separate,” says Karin Cabili, CEO and Founder of Dropit. “The next wave of retail will require brands to use technology to advance operational efficiency and adapt to consumers’ constantly evolving shopping habits, who have grown accustomed to the convenience provided by online shopping. By unifying online and offline inventories, brands can reduce operational costs and minimize their environmental impact while simultaneously speeding up shipping times.”

Dropit‘s technology helps mall-based retailers and operators combat losses due to reduced foot traffic and net sales around-the-clock without time or geographic limitations. 

Through Dropit integration, brands can sell in-store inventory online, transform physical locations into last-mile distribution points, and source orders to locations closest to the customer, thereby reducing the environmental impact of last-mile delivery. 

Dropit has been optimising operations for malls and brands throughout the US, Europe, and the UK over the past six years. 

Most recently, Dropit has expanded from fashion into consumer electronics, adding Razer to its growing roster of brands it services.

“The retail industry continues to change, but this is one of the biggest issues I’ve seen the industry face for decades with no real solution to date,” says former CEO of Macy’s, Terry Lundgren, who invested in Dropit and also sat on the company’s board. “This technology breathes new life into the retail ecosystem as a whole.”

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