Fondue

What Fondue does

Fondue is a CashBack incentive platform built as a Shopify app that enables direct-to-consumer ecommerce merchants to replace traditional coupon codes with post-purchase rewards. After a qualifying order, customers receive an email to redeem a CashBack reward, choosing between store credit (redeemable only at the originating merchant) or a prepaid Mastercard issued by Patriot Bank, N.A. under license from Mastercard International Incorporated. The platform integrates with merchants' existing email and SMS stacks through a simple UTM-based linking mechanism that attaches to messages, popups, ads, or influencer campaigns, and includes built-in A/B testing that lets merchants measure the impact of CashBack versus coupon incentives before scaling. The product is positioned as a margin-protection tool: merchants only pay out rewards when customers truly convert, addressing coupon code leakage and rising COGS pressure on Shopify brands.

The company was founded in 2021 and is headquartered in New York with a Tel Aviv office; its legal entity is Stodge Inc. DBA Fondue, incorporated in Delaware with a mailing address in Scottsdale, Arizona. In September 2022 Fondue closed a $10.5 million seed round co-led by Quiet Capital and Hanaco Ventures, and in 2024 it was acquired by Postscript, the leading SMS marketing platform for Shopify brands. Fondue is built and run by the Postscript team and is distributed through both the Shopify App Store (self-serve) and direct enterprise sales motions ("Book a Demo" CTA). The business model is merchant-funded and transaction-based, with pricing not publicly disclosed and a quote/consultation-based sales process supported by a Pricing & ROI Calculator on the website. Documented outcomes include +31% SMS/email signups, +5% contribution margin, and +20% welcome-series revenue lift, with named customer logos such as Ridge, True Classic, Beekman, Mary Ruths, Collars Co, Flux, Rylee Cru, FrostBuddy, and ohsnap concentrated in ecommerce apparel, beauty, and wellness verticals. Geographic reach spans North America and Israel, with non-USD orders excluded from CashBack eligibility per the terms of service.

Name

Fondue

Legal name

Stodge Inc. DBA Fondue

Website

https://getfondue.com

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

1–10 employees

Short description

Fondue is a Shopify app that lets ecommerce merchants replace coupon codes with post-purchase CashBack rewards (store credit or a prepaid Mastercard), serving direct-to-consumer Shopify brands seeking to protect margins and grow SMS/email lists. The company operates as a Postscript subsidiary.

Ownership category

akta.pro rank

Product category

Ecommerce Marketing Software

NAICS

Sales Financing (52222)

SIC

Finance Services (6199)

akta.pro primary industry

Price Comparison, Deals, Cashback & Loyalty Shopping Platforms (BPAMAGAH)

Keywords

• Shopify cashback app
• Ecommerce incentive platform
• Conversion optimization software
• Customer retention tools
• Prepaid reward cards

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Software

Cost components

Personnel, Technology or R&D, Marketing or Sales, Operations

Revenue model

1. CashBack Incentive Platform (Merchant-Funded): Fondue charges merchants for the CashBack incentive service. Merchants pay out incentives only when customers truly convert (after placing an order and completing the redemption process), protecting merchant margins. The revenue model is transaction/outcome-based where merchants pay for incentives that drive measurable conversions (list signups, revenue lift). The product replaces traditional coupon codes, offering merchants a more cost-efficient incentive mechanism.

Go-to-market motion1 record

Distribution channels2 records

Marketing channels4 records

Core offering

Fondue operates a Shopify-installed CashBack incentive platform that enables direct-to-consumer ecommerce brands to replace traditional coupon codes with post-purchase CashBack rewards. Merchants integrate via UTM links across email, SMS, popups, ads, and influencer campaigns; customers redeem rewards as store credit or a Patriot Bank, N.A.-issued prepaid Mastercard after qualifying purchases. The platform includes built-in A/B testing to measure CashBack performance versus coupons before scaling.

Product overview

Fondue offers CashBack as its core product—a Shopify app that replaces traditional coupon codes with a CashBack rewards system. The platform enables merchants to offer customers their choice of rewards (store credit or prepaid award cards) after qualifying purchases. The system includes built-in A/B testing capabilities, integrates with email and SMS providers via UTM parameters, and helps merchants protect profit margins while driving conversions and list growth.

Differentiator

Problem solved

Functional benefit

Brands

• CashBack: A reward system that allows merchants to offer CashBack incentives to customers after purchase, with options for store credit or prepaid award cards.

Products and services

• Fondue CashBack A Shopify-installable CashBack incentive platform for ecommerce merchants that replaces traditional coupon codes with post-purchase rewards. Merchants attach CashBack to email, SMS, popup, ad, or influencer links via UTM parameters; customers choose between store credit or a prepaid Mastercard after a qualifying purchase. Built-in A/B testing allows merchants to measure CashBack versus coupon performance before scaling.
• Fondue Award Prepaid Mastercard A prepaid Mastercard issued by Patriot Bank, N.A. (Member FDIC) that customers can select as their CashBack redemption. Usable online or in person at any merchant accepting the Mastercard network, broadening the perceived value of the CashBack reward beyond the originating Shopify store.
• Store Credit Reward An in-store credit option that qualifying customers can redeem on a subsequent purchase at the originating merchant's Shopify store, keeping the redeemed value within the merchant's ecosystem.

Quantifiable outcome

• +31% SMS / Email Signups
• +5 more outcomes

Named customers9 records

Segments1 record

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Three partnerships are on record, tiered core.

• PostscriptcoreStrategic or Co-development PartnerFondue is a Postscript company — built and run by the same team behind the leading SMS platform trusted by 20,000+ Shopify brands. Postscript provides the foundational distribution channel and team expertise. Fondue's legal entity is Stodge Inc. DBA Fondue, which is d/b/a Postscript.
• Patriot Bank, N.A.coreOthersPatriot Bank, N.A. is the issuing bank for the Fondue Award Prepaid Mastercard. The card is issued by Patriot Bank, N.A., Member FDIC, pursuant to a license by Mastercard International Incorporated.
• MastercardcoreTechnology or IntegrationMastercard International Incorporated licenses the payment network for the Fondue Award Prepaid Mastercard. The card can be used everywhere Mastercard debit cards are accepted.

Scale indicators2 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Yotpo: Ecommerce marketing platform spanning reviews, SMS marketing, and loyalty/rewards for Shopify and other platforms. Overlaps with Fondue on the merchant rewards layer and shares the same Shopify-first DTC customer base.
• Tango Card: Digital rewards and gift card infrastructure provider powering prepaid and stored-value incentives for businesses. Directly comparable to the infrastructure layer behind Fondue's prepaid Mastercard reward option.
• Rise.ai: Gift cards, store credit, and loyalty rewards platform native to Shopify, with similar merchant-funded mechanics. Closest functional analogue to Fondue's store-credit reward option and frequently evaluated by the same Shopify merchant buyer.
• Smile.io: Loyalty, referral, and rewards platform purpose-built for Shopify and Shopify Plus merchants. Directly competes with Fondue on the merchant-funded incentive layer, with overlapping ICPs and a parallel Shopify App Store distribution model.
• Tremendous: Digital rewards and payout platform offering prepaid cards, gift cards, and bank transfers for incentive and consumer-reward programs. Competes in the same digital-rewards category that backs Fondue's prepaid award card.
• LoyaltyLion: Loyalty and rewards platform for Shopify and BigCommerce merchants offering points, tiers, and referral incentives. Competes for the same merchant incentive budget as Fondue, with a horizontal positioning across ecommerce platforms.
• Rivo: Loyalty, referrals, and customer accounts platform for Shopify merchants focused on retention mechanics. Competes with Fondue in the same merchant-funded incentive category, particularly around list growth and repeat purchase.

Broad incumbents

• Klaviyo: Dominant email and SMS marketing platform for Shopify and ecommerce brands. Incumbent in the channels Fondue plugs into (email/SMS), with an embedded incentive and signup-form feature set that partially overlaps with CashBack.
• Attentive: Enterprise SMS marketing platform widely used by DTC and Shopify brands. Sits in the same SMS stack as Fondue's parent (Postscript) and competes for the same merchant messaging budget at the upper end of the market.

Emerging players

• Friendbuy: Referral and loyalty platform focused on ecommerce brands, including Shopify merchants. Partial overlap with Fondue on incentive-driven acquisition and retention, with a narrower referral-first feature set.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/Get_Fondue
• LinkedInlinkedin.com/company/fondue

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds2 records

Investors11 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Fondue