There's a new kid on the block when it comes to Aussie fintech. The company is known as Refundid, and the Aussie start-up is already turning heads with its backing by the venture arm of buy now, pay later provider, Afterpay Ltd (ASX: APT).
Refundid is garnering the interest of investors as it streamlines the online shopping experience. Much like Afterpay, this startup is making an effort to remove a historical pinch point for shoppers. Today, the Sydney-based startup is in focus after raising $3 million in a funding round led by AP Ventures.
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Kind of like Afterpay, but reversed
The first question that probably comes to mind — "what does Refundid do?". Well, the fintech company gives customers the ability to receive a refund within 30 seconds. On the Refundid website, it is outlined as a simple 1, 2, 3 process. Select the items you want to return, get the money back almost instantly, and then supply a tracking number.
In a way, the value proposition to customers is very Afterpay-esque… people want what they want, and they want it now. While Afterpay delivers this by allowing customers to get the product upfront and pay for it later, Refundid reverses it by the customer getting paid and returning the product after. In essence, it's all about putting the customer first, which is the stereotypical retail adage.
The company was started by the four co-founders, Brad Karney, Judd Katz, Joel Aaron, and Ilan Kessler. Originally, the idea was born out of frustration when one of the founders was forced to wait 6 weeks for a refund after returning an online purchase.
In an interview with The AFR, Refundid co-founder Brad Karney said:
If you mess up the refund experience, the customer is not going to return. One of the biggest uncertainties for customers shopping online in this new era of e-commerce is am I going to be able to get my refund back?
What we're doing is providing confidence to the customer … if they see [the retailer] offers Refundid, they can see they can get that refund back instantly and that gives them the confidence to purchase more.
In short, the value to merchants would be increased sales as customers can shop and return as needed stress-free.
Refundid gets cash injection
The exciting news today is that Refundid has caught the backing of some big names for $3 million in funding. The capital raise was 3 times oversubscribed, counting AP Ventures as a strategic investor.
While Refundid might be early in its journey, it already has some big retailers onboard. These include Culture Kings, Universal Store, and General Pants Co.
Reportedly, Afterpay's AP Ventures could play a pivotal role in future synergies and expansion. Unfortunately for retail investors, unlike Afterpay, Refundid is not listed on the ASX.
