Online retailer Boxed Inc. has secured up to $20 million in its quest for either profitability or a sale of the company.
According to Boxed, the company will receive $10 million in funding from un unknown lender by entering into a second lien secured term loan facility. The company will receive an additional $10 million in funding subject to the completion of certain milestones in a process for selling the operation.
Boxed has said that it is seeking funding in a drive toward profitability and that a sale of the company is one of their options but not necessarily the goal.
“This new financing will provide greater flexibility for us to continue to execute on our strategic vision and the strategic alternatives process,” Chieh Huang, Boxed co-founder and chief executive officer, said in a statement. “We value our existing relationships with funds and accounts managed by BlackRock and the lender and are excited to continue to work closely with them.”
The move follows Boxed’s announcement earlier this month that it is planning to explore strategic alternatives. The company in December also said it was actively investigating capital raising initiatives.
In addition to its retail e-commerce service that provides approximately 2,500 bulk pantry consumables to businesses and household customers, such as paper products, snacks, beverages, and cleaning supplies, Boxed operates a software and services business which offers customers access to its e-commerce platform technology.
Other monetization initiatives include allowing vendors, manufacturers, and other partners to purchase and deploy ads to their customers through the native advertisement function of Boxed’s e-commerce platform, and white labeling, in which the Boxed name and logo is removed to rebrand products for client use.
The company reported that it serviced approximately 400,000 customers across its retail segment in 2021.