Price comparison app Zyft has raised $7.5 million via a private investment to help fund its Australian growth plans and improve transparency for consumers, boosting the startup’s post-money valuation to $37.5 million.
Launched in 2019 by iSelect founder Damien Waller, Zyft says it has helped more than 550,000 users make more than 100,000 product searches a day to save when spending.
The latest funding round was led by angel investor and founder of PSC Insurance Paul Dwyer with Zyft announcing that the new capital will support its investment in artificial intelligence (AI) technology to drive product improvements, user acquisition and propel the rollout of revenue diversification initiatives by the company.
The capital raise, announced today, has been accompanied by the appointment of former LocalAgent Finder CEO and Destination Melbourne board member Richard Stevens as Zyft’s new CEO.
Stevens, who worked with Waller at iSelect, brings 25 years of experience in business leadership and digital product innovation across early-stage and high-growth companies.
The new CEO will spearhead Zyft’s next phase of growth with a focus on expanding the company's product capabilities and its global reach.
"I am incredibly excited to join Zyft at such a pivotal time. The company has already built a fantastic foundation with its cutting-edge AI-powered platform,” says Stevens.
“This new funding will enable us to accelerate our product roadmap, deliver even greater value to Australian shoppers, and build strong, mutually beneficial relationships with retailers. Our goal is to make online shopping smarter, more transparent, and ultimately more rewarding for everyone."
Stevens worked at iSelect for more than six years, finishing up as head of product and operations in 2015. He spent almost nine years at LocalAgent Finder until his departure as CEO in November last year.
The Melbourne-based Zyft enables users to compare prices instantly in real-time by clicking on a retail product. The company provides “unbiased” comparisons for millions of products from more than 50,000 Australian retailers.
Leveraging its early mastery of barcode technology, Zyft says it empowers consumers to “save an average of 30 per cent per purchase where savings are found by delivering accurate competitor pricing directly to their fingertips”.
“From the outset, our vision has been to create a smarter and more transparent shopping experience,” says Waller, a former investment banker who co-founded iSelect in 2000 to help consumers seek out better deals for health insurance, car insurance, energy and broadband services.
“Now, with a successful fundraise closed and Richard taking the reins, we are in a stronger position than ever before to double down on our mission to empower consumers to make informed purchasing decisions and save money.”
Waller exited the iSelect board in 2017, selling his 10 per cent stake in the formerly ASX-listed company not long afterwards.
Zyft joins a raft of companies in the Waller Group portfolio, including frequent-flyer-points tool Point Hacks, as well as Pay.com.au and CareAbout, both of which have exceeded $100 million valuations.
Dwyer, the lead investor in the latest funding round, has affirmed his faith in the Zyft business and its growth prospects.
"Zyft is addressing a critical need for transparency in the Australian online shopping landscape by empowering consumers and creating a more level playing field for retailers,” says Dwyer.
“We are confident that during this next phase of growth, Zyft will continue to add huge value to both retailers and shoppers.”
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