Kenyan loyalty startup, CashBackApp, raises $475k Pre-seed funding round to accelerate its plan to scale
CashBackApp, a Kenyan customer loyalty firm, has secured a pre-seed fundraising round of US$475k for operational expansion. Lofty Inc, Sherpa Ventures, and Loyal VC were among the institutional investors in the round, which also included angel investors from the United States, the United Kingdom, Nigeria, and Kenya.
The money will help the company expand its service in Kenya and prepare for expansion into other countries.
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Apart from CashBackApp, Sherpa Ventures has made 8 investments so far, including recently joining the funding rounds of fintech startups OnePipe and Boost. Most of its investments have been in the fintech space.
In addition to expertise and capital, Sherpa Ventures said it aims to accelerate partnerships between startups in Africa and the Asia Pacific. Some examples of such tie-ups include Singapore-based Fomo Pay’s collaboration with Kenya’s Wapi Pay and Red Dot Payment’s partnership with Finserv Africa.
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What You Need To know About CashBackApp
CashBackApp, which was founded in late 2018 by Kim Hodgson, helps fast-moving consumer goods (FMCG) companies create customer loyalty by allowing them to earn cashback via M-Pesa on their routine purchases.
The firm collaborates with FMCG companies and merchants, who utilize the app to offer cashback to customers who purchase products that they promote on the app. It has gained a lot of traction, with 45,000 downloads in the first half of 2021, thanks to a monthly compounded rate of 38 percent growth.
CashBackApp’s B2B customers include Coca-Cola, Colgate, and Ajab, while the merchant network includes eight prominent multi-chain retailers such as Khetias, Eastmatt, Mulleys, and Jamaa.
By December 2021, CashBackApp hopes to have reached over one million users.
The company is currently powering the loyalty rewards program of Zimbabwean fintech business EcoCash, among others.
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