Israeli unwanted store credit app company Zeek has raised $3 million in Series A funding from Blumberg Capital, Qualcomm Inc., through its venture investment group, Qualcomm Ventures and Waze founder and existing investor Uri Levin. Zeek has developed a marketplace app that helps consumers to buy and sell unwanted store credit (i.e., credit notes, gift vouchers, gift cards and e-vouchers) below face value.
The new funding will be used to expedite Zeek’s expansion into Europe this year.
Zeek chairman Uri Levin said, “Zeek deals with a big problem of $100 billion wasted globally every year by consumers on store credit; it is changing the way consumers buy through its innovative sharing economy that I love and it is simply making the world a better place.”
Zeek CEO Daniel Zelkind said, “Zeek has proven to be a great success in Israel and so we’re really excited to be in the UK. Close to 20% of issued store credits in the UK go unredeemed year over year resulting in a $1.5 billion loss to consumers as well as retailers that are not able to secure the 40% up-sell on average they usually receive on redemptions so of course we see a huge potential for our service to UK consumers. What we are doing resonates with consumers as we are seeing hundreds of new users sign up every day. Our expansion into Europe will take place over the next 12 months so we hope to see people from Portugal to Poland using Zeek to regain lost value and save on their shopping every day.”
Having experienced rapid growth in Israel, Zeek launched in the UK in December 2014. With over a billion pounds worth of store credit breakage each year, Zeek aims to regulate the secondary region and provide the solution to a costly and frustrating problem for both UK consumers and retailers.
Offering discounts of 5-20% on average, Zeek offers a wide range of brands from across the High Street. What’s more, electronic gift cards and vouchers bought through Zeek can be redeemed instantly in-store and online with the app.
Retailers also benefit from increased footfall and conversion from customers cashing in their vouchers as well as incremental sales of 40%.
Published by Globes [online], Israel business news - www.globes-online.com - on May 19, 2015
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