Fintech startup ZIPZERO has secured over £1m in seed funding for its consumer rewards platform, which gives shoppers cash to use for household bills in exchange for sharing their shopping receipts with retailers.
The London-headquartered company raised the capital from a “diverse pool” of angel investors, including Craig Dewar, the founder of payments company Global Processing Services.
Launched in November 2021, ZIPZERO’s desktop and mobile app is used by 100,000 UK consumers to scan digital or physical shopping receipts, which are then accessed by partner retailers and brands.
In return for this consumer behaviour data, ZIPZERO provides users with cash rewards for recurring monthly bills, such as gas, electricity or a phone bill. Partner brands use the receipt data to provide tailored offers to consumers.
ZIPZERO has taken the business model behind Google and Facebook – tracking transactional behaviour to share with advertisers – but unlike the two tech giants, it is returning some of that value to consumers.
“Ultimately, our mission is to empower consumers,” said Mohsin Rashid, CEO of ZIPZERO. “By delivering cash rewards every time they make a purchase with their favourite brands and retailers, we are allowing them to monetise their own shopping data, creating a fairer retail ecosystem.”
The mass marketing startup is positioning itself as a way for consumers to reduce household bills during the cost-of-living crisis.
Cash reward payments are funded by partner retailers and brands such as Asda, Boots, Sainsbury’s and eBay. ZIPZERO said it will use the seed funding round to secure more of these partnerships. ZIPZERO said that it added 30,000 new users in January this year. It has a team of 30 based in the UK and Poland.
“With funding secured, 2023 will undoubtedly be an important and exciting year for us,” added Rashid. “We’re looking forward to accelerating our growth; entering new partnerships with retailers and brands; delivering a fairer, transparent exchange of consumer data; and helping more consumers gain cash rewards from their every shopping.”
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