Kenyan customer loyalty startup, CashBackApp has raised $475,000 in pre-seed funding round to scale its services in Kenya and also to prepare for expansion into neighbouring countries.
Investors in this round include Lofty Inc, Sherpa Ventures, Loyal VC, and several angel investors based in the US, UK, Nigeria, and Kenya.
Founded in 2019 by Simon Ngigi, CashBackApp helps fast-moving consumer goods (FMCG) companies to build loyalty amongst customers by allowing them to earn cashback rewards on their everyday shopping through Kenya’s biggest mobile money company, M-Pesa.
Since its launch, the company has achieved significant traction, with the user base growing at a monthly rate of 38% in the first half of 2021. The platform currently has 45,000 downloads on the app store.
On the Business-to-Business (B2B) side, CashBackApp has signed up major international FMCGs as customers, including Coca-Cola, Colgate, and Ajab. Also, its retailer network consists of eight of the largest multi-chain retailers in Kenya including Khetias, Eastmatt, Mulleys, and Jamaa.
This latest funding will be used to scale its operations in Kenya and expand to neighbouring countries. CashBackApp plans to reach more than one million shoppers by December 2022.
What they are saying
Idris Ayodeji Bello Managing Partner of LoftyInc Capital Management said, “Apart from helping consumers save money, they are also helping FMCGs understand their markets and customers better through quality data and actionable insights. This is in line with our investment thesis of backing world‐class teams of local Africans who are leveraging innovation to solve significant problems.”