Purse.io, the Bitcoin startup that bridges the gap between Bitcoins and the famous retailer Amazon.com, has just announced a $300K fundraising round yesterday. Several well-known figures in the Bitcoin community such as Roger Ver and Bobby Lee (BTC China) took part in this round alongside Venture capitalist firms such as FundersClub, StrongVC and Yang Ventures.
The rapid success of this bitcoin startup, which now has 2,000 users and generates more than $ 120,000 of revenue per month, can probably be explained by the ingenuity of its business model. Quite simply, users wishing to acquire bitcoins are linked with those wishing to sell via some shopping on Amazon.com. The buyer then proceeds to purchase the seller’s items featured through Amazon wishlists, the seller releases the funds when the items get delivered. Purse.io co-founder Kent Liu summarizes the whole concept:
It’s kind of like an exchange, but with that Amazon layer.
The startup is in a constant struggle with its rival Brawker, who announced a few days ago the launch of a multi-signatures transaction system. However, this fund raising should allow Purse.io to pass to the next level and multiply new features and special offers.
The promotional part is indeed at the heart of the startup’s business model: buying on Amazon with a consequent discount is possible by selling your bitcoins at a rate lower than the current bitcoin price, as explained by Andrew Lee:
The holidays will be huge for Purse and more specifically Black Friday. We want to provide the BTC community with the biggest discounts possible. Currently, our average discounts for any item are 20% but we have even seen up to 45% off entire purchases. The higher is the discount percentage, the longer the acceptance and delivery times are but if you don’t need the item immediately then why not get a large discount.
In the case some of you are still doubtful, here is an infographic created by the unconventional exchange that illustrates the savings that you will be likely to get:
Images from Purse.io and Shutterstock.