Gift Voucher Marketplace Zeek in Financial Trouble
On Wednesday, creditor Viola Credit filed a request to appoint a receiver for Zeek, stating the company does not have the capital to cover its debts
For daily updates, subscribe to our newsletter by clicking here.Founded in 2014, Zeek enables users to exchange unwanted vouchers and gift cards at a discount for cash. The company has offices in Tel Aviv, London, and Düsseldorf. Zeek previously raised around $12.5 million from investors including Qualcomm and Blumberg Capital, according to Crunchbase. In the documents filed, Viola Credit stated it gave Zeek a loan of $1 million in April 2017, and that while the company's assets are valued at around $1 million, it owes around $4.8 million in total to Viola, suppliers, clients, and employees. The company employed 60 people until recently but let go most of its Israeli employees a month ago due to financial difficulties, Viola said, adding that recent attempts by Zeek to raise capital from investors to cover its debts have failed.
Relations between startups and non-venture capital creditors can be tense, but currently Zeek has not received a receivership order and is operating as usual, Zeek co-founder Ziv Isaiah told Calcalist Wednesday. Zeek and Viola are holding talks in order to assume normal operations, he added.