Radar Raises $170 Million in Series B Funding at Over $1 Billion Valuation

Radar, a hardware and software company that helps retailers manage inventory and reduce loss from theft or error, raised $170 million in its series B funding round at a valuation of over $1 billion. The round was co-led by Gideon Strategic Partners and Nimble Partners, with participation from Align Ventures. American Eagle CEO Jay Schottenstein is also an investor in the company.

Radar was founded in 2013 by Spencer Hewett.

The company initially focused on instant checkout technology before shifting its strategy to inventory management. Its system uses ceiling-mounted hardware to read RFID tags with 99% accuracy. The technology gives store staff real-time visibility into stock locations.

American Eagle was the first retailer to deploy the system across its stores. Schottenstein said the technology has improved inventory visibility and allowed staff to focus on customer service. Radar also works with Gap's Old Navy and other retailers.

Some clients offering buy-online-pick-up-in-store options have reduced order cancellation rates from 25% to 3%. One client reported a 60% reduction in inventory loss after installing the system in a single store. The company declined to release broader performance data.