Israeli startup Shopiz, which offers group shopping for products through a connection between consumers, has completed a $2 million financing round led by Ron Zuckerman and other private investors. The company has raised a total of $3.5 million to date. Investors in its first financing round included advertisers Yoram Bauman and Yossi Lubaton. The company plans to use the money from the current round to expand its business and recruit employees for development in Israel and international markets.
Founded in 2014 by CEO Gilad Brovinsky, Shopiz's offices are in Tel Aviv. The company's platform, which is available on its website, makes it possible to purchase goods and services at substantial discounts from a wide range of stores, websites, and various businesses. Shopiz operates a social shopping mechanism for lowering the price when more buyers join a purchase, even after the purchase is made. Customers continue receiving reimbursement directly on their credit card account after they buy a product when other customers join the purchase and the price of the product continues to fall.
Shopiz predicts that annual sales of goods and services from hundreds of stories through its mechanism will total NIS 45 million. The company allows any store or retailer to put offers on its system at no cost, without any commitment on the size of the discounts, the number of price levels, or the quantities.
Brovinsky says, "Shopiz enables customers to buy more cheaply. It's as simple as that. The basic model relies on applying social purchasing familiar from purchases of apartments and cars to products consumed daily. Logically, whenever someone wants to buy something, many other people want to buy the same product or service. If they all buy together, they'll pay less.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 6, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017