Israeli startup Zeek, which produces what it calls the 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, has secured $3 million in Series A funding from Blumberg Capital, Qualcomm Incorporated, through its venture investment group, Qualcomm Ventures and Waze founder/existing investor Uri Levin.
The new funding will be used to expedite Zeek’s expansion into Europe throughout 2015.
Chairman Uri Levin commented: “Zeek deals with a BIG PROBLEM of $100B 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.”
Daniel Zelkind, CEO of Zeek commented: “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 $1.5B 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.”
Alon Lifshitz, partner at Blumberg Capital commented: “We at Blumberg capital love Zeek’s focus on helping consumers save money on unused store vouchers, preventing users from throwing money down the drain. Their strategy combines technological and macro-economic advancements to create a unique solution which will change how consumers shop in years to come.”
“Zeek has used a mobile-first approach to create a win-win for consumers and retailers, ” says Mony Hassid, senior director Qualcomm Ventures. “We believe they are well positioned to succeed in the UK’s large, growing mobile commerce industry.”
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.
In addition to this, Retailers also benefit from increased footfall and conversion from customers cashing in their vouchers as well as incremental sales of approximately 40%.