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Postscript acquires cash-back company Fondue

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Jul 11, 2023
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Illustration: Sarah Grillo/Axios

SMS marketing company Postscript acquired a majority stake in Fondue, a cash-back app for Shopify brands, president Alex Beller tells Axios.

Why it matters: In an industry where margins count, helping retailers increase their profitability, garner revenue and build customer loyalty is paramount.

Details: The deal was valued in the “eight figures," Beller says, declining to disclose additional financial details.

  • Fondue’s co-founders will join its leadership team, and the rest of its employees will join Scottsdale, Arizona-based Postscript.
  • Postscript hasn’t been historically acquisitive, Beller says and so Fondue’s case was highly opportunistic.
  • Fondue was previously backed by a host of investors including Quiet Capital, Hanaco Venture Capital, Gaingels and Sugar Capital, among others.

How it works: Fondue's app incentivizes shoppers to take cash-back offers instead of discount-driven offers — which can ultimately hurt a brand’s bottom line as they’re giving up margin, Beller says.

  • Most people aren’t going to redeem their cash-back offer or a large percentage may end up selecting store credit, driving repeat purchases at the retailer, he says.

Meanwhile, Postscript works with Shopify merchants to allow them to compliantly build a list of opted-in SMS subscribers and send texts to their customers around product launches and shipping updates.

  • Postscript also offers two-way customer support, aiming to make SMS “the number one revenue channel for brands," Beller says.
  • It launched SMS Sales earlier this year, which connects a retailer’s customers with real-life SMS sales associates to engage with them and help facilitate sales.

Catch up fast: Postscript raised $65 million in a Series C round last year led by 01 Advisors with Twilio Ventures and Expanding Capital participating.

  • Postscript has raised $106.5 million to date.
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