Fondue Cashback lands $10.5m

• 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
• Fondue plans to use this round to scale up product development, expand its offline CashBack channel and accelerate its go-to-market strategy to meet rapidly growing demand
• Currently, Fondue is working with more than 100 merchants

New York- and Tel Aviv-based Fondue CashBack, a Shopify app that replaces coupon codes with ecommerce discount codes, has raised $10.5 million in seed funding.

Quiet Capital and Hanaco Ventures led the round.

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.

“Brands are addicted to legacy discounting strategies like coupon codes, thinking it’s just the cost of doing business,” said Oren Charnoff, CEO and co-founder of Fondue CashBack, in a statement. “Fondue CashBack is more profitable than legacy discounting so brands enjoy a positive feedback loop of higher conversion, more profit, more LTV – money they can reinvest back into sustainable growth.”

Fondue is working with more than 100 merchants. It plans to use the new capital to scale up product development, expand its offline CashBack channel and accelerate its go-to-market strategy.