Logistics technology specialist Optoro Inc. has raised $75 million in new funding to expand development and sales of its software aimed at helping retailers handle returns and resales of merchandise, a capability taking on greater importance under e-commerce.

The new funding round, led by Franklin Templeton Investments, a unit of Franklin Resources Inc., BEN -0.86% brings the company’s total capital raised to $200 million. Optoro said the round included new and existing investors, including a large state pension fund. The company declined to disclose its current valuation.

Optoro is one of a handful of third-party software and logistics companies working to improve the costly returns process, known as reverse logistics, for retail sales that are increasingly happening online. Optoro estimates the annual U.S. market for customer returns is $380 billion and is growing rapidly as consumers get more comfortable buying and returning online purchases.