TEL AVIV, Israel and NEW YORK, September 19, 2022 /PRNewswire/ — Cash Back Fonduethe Shopify app that replaces coupon codes with in-brand CashBack today announced it will be shutting down on a $10.5 million seed round led by Quiet Capital and Hanaco Ventures.
Other investors in the round include Infinity Ventures, Ground Up Ventures, Sugar Capital, Starting Line, R-Squared Ventures, Gaingels, Verissimo Ventures, Samsung Next and JAM Fund. A number of founders and executives have also joined the cycle of consumer brands and fintechs, including Casper, TheRealReal, Thumbtack, Candid, Carraway, CatchCo, Loox, Perry EllisMelio, Rampe, Plaid and Venmo.
“Brands are addicted to legacy discount strategies like discount codes, thinking it’s just the cost of doing business,” says Oren Charnoff, CEO and co-founder. “Fondue CashBack is more profitable than legacy discounts, so brands benefit from a positive feedback loop with higher conversion, more profits, more LTV – money they can reinvest in growth sustainable.”
With CashBack, shoppers see they’re eligible for an incentive throughout the shopping journey, then redeem it post-purchase using their preferred method: additional store credit, gift cards, cash, and more. .
Fondue works with over 100 merchants ranging from emerging brands to publicly traded companies and dropshippers to DNVBs to marketplaces. Fondue plans to use this round to ramp up product development, expand its offline CashBack channel, and accelerate its go-to-market strategy to meet rapidly growing demand.
E-commerce sales are expected to break through $5.5T in 2022 with double-digit growth continuing year on year. Discounts are key to driving conversions across e-commerce and are said to account for 17.9% of total revenue.
“Navigate to any Shopify merchant and you’ll be inundated with discount code offers. These are great for the simple reason that they work, but they have an increasingly prohibitive impact on margin,” notes Dr. Guillaume Herlands, CTO and co-founder. “One of our merchant partners said it well, ‘I give 15% off codes to new buyers, but it cuts my profits by more than 40%. You can’t grow profitably like that.'”
“It has never been more difficult or more important than it is today to increase the profitability of e-commerce.” added Abraham Lucia, COO and co-founder. “CashBack means brands can fulfill this mandate by giving buyers agency and being rewarded with higher AOV, more first-time purchase profit, greater engagement and higher LTV.”
Charnoff, Herlands and Lucey just founded, supported and operated their own e-commerce brands and brought that perspective to create a branded product. The Fondue CashBack application available today in the Shopify app store has a massive return on investment with a 30-day free trial and a charge of only $19.99 a month later.
Charnoff concluded “CashBack enables profitable growth by replacing discount codes – it’s like having your fondue and eating it too.”
About the fondue
Fondue, based in New York and Tel Aviv, allows brands to increase their conversion rate and profits by replacing discount codes with CashBack. Join over 100 industry-leading brands who are already using CashBack to earn more revenue, realize more profits, and build lasting relationships with their customers.
Major venture capital firms back Fondue, including Quiet Capital, Hanaco Ventures, Infinity Ventures, Sugar Capital, Ground Up, Starting Line and R-Squared Ventures. Visit www.getfondue.com