CBA-backed deal and cashback app Cheddar, rival to Afterpay, shuts down
A start-up with the backing of Australia’s biggest bank is shutting down less than two years since it launched.
The Commonwealth Bank of Australia threw its weight behind a deal discovery and cashback app called Cheddar which was hailed as the ‘new TikTok of shopping’.
Cheddar got off the ground through the CBA’s venture scaling business x15ventures in November 2021.
The app proudly advertised itself as being strictly for “non Boomers” and started off with more than 600 merchants on board, including Menulog, Agoda, Under Armour, Net-A-Porter, Pizza Hut, Culture Kings and Cotton On.
It was a direct competitor to other successful companies offering similar services, including Westpac-backed ShopBack, ANZ’s own version Cashrewards, and Afterpay.
But 18 months later, the company has folded, with August 31 earmarked as the day it will be wound down. The move has left 38 jobs in limbo.
In a statement on its website earlier this week, the business flagged that it was closing down, writing in a note to customers; “It’s been a wild ride but now it’s time to say goodbye and close up Cheddar”.
Users of the platform will not lose any money. Instead, they must cash out and withdraw all their available balance by the August deadline and they are no longer to purchase anything through the app.
Since its launch, Cheddar expanded to bring 1000 merchants into the fold.
To date, the Gen Z app has paid out a whopping $2 million in cashbacks and bonuses.
“We started Cheddar to help young Australians get more back from their everyday spending – and we’ve done just that,” the website’s message said.
The statement added: “While we’re sad to be saying goodbye, we’re incredibly grateful for the support we’ve received from customers and brand partners, and all the hard work from our wonderful team over the last two years.”
Around 300,000 young Australians used the app.
A company spokesperson said the closure was “devastating”.
“While it’s an inherent part of venturing that not all startups will reach scale, it’s still devastating news for a team who have achieved so much over the past two years, and truly succeeded in shaking up the cashback industry,” the x15ventures representative told news.com.au.
“In the coming weeks, we’ll be working hard to find opportunities across our portfolio of ventures for any affected team members, as we’ve done successfully in the past.”
Helen Hey, Cheddar’s managing director, added: “While disappointing news for our team and customers, I’m so proud of what we’ve achieved over the past two years, particularly in such a tough macro-economic climate.
“Innovation is about pushing boundaries and taking bold steps into the unknown and this wouldn’t have been possible without the incredible effort and dedication of the Cheddar team.”
Cheddar is a brand of CBA’s New Digital Businesses Pty Ltd, a wholly owned but non-guaranteed subsidiary of the bank. They have also led more successful startups including kid’s money app, Kit, and digital home loan, Unloan.
The CBA was also contacted for comment.
Cheddar launched in November 2021, a month after Australia’s two largest cities, Sydney and Melbourne, exited lockdown, and right before Black Friday and Cyber Monday sales hit the shopping sector.
More Coverage
It was compared to TikTok because of its scroll-happy feel of a popular social media app, except instead of being filled with regular posts, the platform had thousands of styles and offers from merchants.
As part of the Cheddar pilot, the firm said it engaged more than 1000 young Australians in its design process to create a product that delivered what they want. However, this clearly wasn’t enough to save it from its fate.
ncG1vNJzZmivp6x7r7HWrGWcp51jrrZ7xaKlmqaTmnyjwdKipZ6ro2S8tbTEq2SippSqwLW%2ByJ6qaJuSlq%2Bir8qem2aclZa5bq3NnWScmaOdr6KvymaYqahdmLWmsMOaqWarmKrBtHnDqK6nZ56axLR50q2mq7FfaoR5r5ZpnGmdkpiFeoSXbGhraGiagXmDwXKaa2hgbIM%3D