Venture capital firm Gamestop has signed a deal to invest in a “virtual grocery store” to be launched by American Balanced Fund (ABCF), a virtual grocery company which is also looking to raise capital.
ABCF, a San Francisco-based startup, has raised $1.4 million to launch a mobile grocery delivery service called Zappos in the US and Europe.
The deal will see Gamestops investment in the Zappo platform, which will be used to deliver food to consumers in virtual grocery stores, and also the ability to pay for the service using bitcoin.
ABCC is one of the largest bitcoin wallet companies and is backed by the likes of Jack Ma, Bill Gates and Jeff Bezos, who have also backed similar ventures.
ABCCF has raised over $6 million in capital, according to the company’s website.
ABCDF is based in the Netherlands and aims to offer “free delivery of groceries to your door”.
“With Zappotos, our mission is to make it possible for you to buy your groceries online and in your local neighbourhood,” CEO Paul Cappel said.
“Our goal is to provide the convenience of a grocery store, with the convenience and speed of an online shop.
Our app will help you shop, buy and store your groceries on your smartphone and deliver them to your doorstep.”
GamestOP’s acquisition of ABCDF follows the sale of Zappots service to Amazon, which has also invested in virtual groceries, with plans to use the same technology to offer delivery services in the future.
In August, ABCDF raised $2 million from VC firm Founders Fund, which is a member of ABC’s venture arm, ABC.
“We have been extremely impressed by ABCDF’s vision, commitment and passion for the future of virtual commerce,” said Jack Ma.
“This partnership with ABCDF will create a new digital platform for online grocery delivery.
It’s great news for customers, merchants and online shoppers who can now enjoy a free grocery delivery when they want it, when they need it and when they’re not,” said Ma.
Gamestopped, the US-based venture capital firm, said the Zoppos mobile grocery service would be powered by a bitcoin mining technology, which it said would allow the service to operate at a fraction of the price charged by Amazon’s delivery service, Zappomb.
The company added that it would be building Zappodas app store, which would provide customers with the ability and the ability, to use bitcoin to pay through their phones, without having to access a bitcoin wallet.
ABCMF CEO John Deutsch told CoinDesk that Gamestoppers acquisition would enable ABCDF to focus more on the acquisition of more of the mobile grocery market.
“It will allow us to focus on the expansion of our existing business, which includes Zappomob, and we believe it will make the company stronger,” he said.