Start-up Shyp has raised $50 million in a round of funding led by venture capital firm Kleiner Perkins Caufield & Byers, bringing its total funding to date to $62.2 million, the company said Tuesday.
San Francisco-based Shyp is the latest start-up aiming to upend an existing, and hugely profitable, business, in this case the $300 billion shipping industry.
Here's how it works: If a customer wants to return a pair of pants to, say, J.Crew, he would download the app, snap a photo of the pants and request a pick up at his home or office.
Shyp takes care of the rest for a flat fee of $5 in addition to the cost of shipping.
The company finds the least expensive way to mail the item, whether that's through the U.S. Postal Service, UPS or FedEx. The service is now available in San Francisco, New York, Miami and will launch in Los Angeles next month.
Past investors including Homebrew and Sherpa Ventures also contributed to the round, in addition to independent investors such as entrepreneurs Kevin Rose and Rent the Runway CEO Jennifer Hyman.
"Today, we're aimed at just consumers, but we're growing the market," Shyp CEO Kevin Gibbon told CNBC. "So I think the existing opportunity is large, but the idea of expanding is really exciting."