Israeli group shopping company Shopiz has raised a $2 million funding round. The round was led by Ron Zuckerman and other private investors. This is the company’s second financing round, and it has raised $3.5 million to date. The new funding wil be used to hire new staff and expand the company internationally.
Shopiz’s was founded in 2014 by CEO Gilad Brovinsky, and is based in Tel Aviv. The company’s platform allows shoppers to purchase goods and services at substantial discounts from a wide range of businesses and websites. Shopiz’s platform utilizes a mechanism in which the price of a product is lowered when more shoppers join in on the purchase. Shoppers can even benefit from this price reduction after they have made a purchase, with the savings returned to their credit cards.
“Shopiz enables customers to buy more cheaply. It’s as simple as that,” said Brovinsky, as reported by Globes. “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.”
Read more: Globes