Mobile payments company ZooZ has closed a $2 million Series A financing round, which was led by XSeed Capital and included previous investors Lool Ventures and Rhodium. This brings ZooZ’s funding to date to $3.5 million.
The company, which has developed a consumer-driven payment platform, will use this latest round of funding to add new product functionality, increase contacts with retailers, solidify partnerships, and build its presence in the rapidly expanding global payments market.
ZooZ CEO Oren Levy and CTO Ronen Morecki founded the company in 2010. Based in Ra'anana, the company recently moved its corporate headquarters to San Francisco to oversee global marketing and sales operations.
Levy said, “Our ability to close a robust Series A round in an increasingly crowded payments market underscores the strength and market potential of our approach. By focusing on creating a superior consumer checkout experience that ultimately leads to better conversion for retailers and developers, we’ve been able to clearly differentiate ourselves from the competition while attracting investors, partners and customers alike.”
XSeed Capital general partner Robert Siegel said, “ZooZ has already established an impressive track record with its market-leading mobile functionality in ways that are incredibly easy for customers to implement,” stated Robert Siegel, the General Partner of XSeed Capital. “Our investment in ZooZ highlights the confidence we have in Oren and his team and their vision to optimize and transform the entire checkout experience.”
Forrester Research recently predicted that spending in the US mobile payments market will reach $90 billion in 2017, a 48% compounded annual growth rate over the $12.8 billion that was spent in 2012. Whereas existing, in-app mobile payment providers have focused heavily on developer needs and backend transactions, ZooZ aims to capitalize on the massive market opportunity by offering a consumer-driven checkout platform that puts users’ needs front and center throughout the entire checkout experience. As a consequence, ZooZ’s unique checkout platform helps retailers reduce shopping cart abandonment and grow their business based on smart consumer insights, leading to better conversion rates for both retailers and developers.
ZooZ’s Series A funding is the latest in a series of developments reflecting the company’s brisk, multichannel expansion in the payments space, as evidenced by its exponential, month-over-month growth rate. In May 2012, the company added an HTML5 mobile web and desktop version to its iOS and Android-compatible offering, giving developers in over 150 countries a fast, secure, and easy-to-use solution for integrating payment functionality into their mobile apps and sites, and enabling retailers to reach their consumers across all platforms.
Published by Globes [online], Israel business news - www.globes-online.com - on April 23, 2013
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