Smart shopping tool startup Checkmate has raised $5 million in a seed funding round to drive product development and build out its new personalized solution for online shoppers.
The tool, available as a mobile app and a web extension, aims to make it easier for shoppers to discover brands, apply savings, manage gift cards and track orders post-purchase, according to a Monday (Sept. 26) press release.
Fuel Capital led the funding round, which saw additional participation from f7 Ventures, Blackbird Ventures, Scribble Ventures, Hyper, Susa Ventures, Joe Montana’s Liquid 2 Ventures, Wischoff Ventures, Exits Capital, Night Capital and Ancestry CEO Deborah Liu, among others.
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“With record-high inflation, economic uncertainty and a volatile stock market, consumers are looking to save wherever they can,” said Harry Dixon, CEO and co-founder of Checkmate. “At the same time, skyrocketing digital ad costs mean retailers and brands need new ways to establish and build their own customer relationships.”
Headquartered in San Francisco and co-founded by three Australians — Dixon, Chief Technology Officer Rory Garton-Smith and Chief Engineering Officer Elliot Rampono — Checkmate officially rolled out its shopping solution over the summer.
The tool finds the best deal from a user’s personal email and automatically applies them at checkout, according to the release. For brands, Checkmate serves as a conversion engine.
Checkmate added that in early testing, users engaged with the app 3.5 times every week and saved an average of 27% on purchases, versus about 15% with other savings apps.
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“In the face of continually rising customer acquisition costs, most DTC companies have invested in personalized marketing to deepen their relationships with existing customers and discover new ones,” said Chris Howard, founding partner at Fuel Capital. “Checkmate is a tool purpose-built to respond to current market dynamics and provide significant value to brands.”
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