CashBackApp, a Kenyan loyalty app has been named a finalist for the 2021 VC4A Venture Showcase on the Seed track.
Since 2017, the VC4A Venture Showcase has helped startup founders showcase their businesses to investors during the Africa Early Stage Investor Summit, a signature industry event organized by VC4A and the African Business Angels Network (ABAN).
This year’s event will take place on November 4-5, and will feature the showcase, which will be divided into two tracks – seed and Series A.
The seed startups, seeking funding rounds that range between US$400,000 and US$8 million, are Mozambique-based logistics startup App load, CashBackApp, Kenyan fintech FlexPay, Ivory Coast-based transport Moja Ride, Nigerian freight management platform OnePort, Madagascan ed-tech service Sayna, Egyptian logistics startup ShipBlu, and Ghanaian fintech Waya.
The Series A startups, which are aiming to raise between US$1.5 million and US$10 million, are Botswana-based insurtech startup Alpha Direct, Kenyan ed-tech platform Arifu, Moroccan e-commerce app Chari, Ivory Coast-based payment aggregator Cinetpay, Moroccan logistics service CloudFret, Egyptian B2B super app Fatura, Egyptian e-health startup Rology, and Nigerian digital identity service Youverify.
Over the next six weeks, the selected startups will participate in a virtual investor readiness program, including workshops by renowned African VC investors, office hours with domain experts, guest speaker sessions, and opportunities to interact with and learn from mentors, peers, and partners. They will also be linked to top VC investors for one-on-one mentorship.
Last month, CashBackApp, also raised a pre-seed fundraising round of US$475,000. 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 CashBackApp expand its service in Kenya and prepare for expansion into other countries.
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.
CashBackApp delivers a strong value proposition to its customers and partners.
The shopper benefits the most since they access a rich basket of offers from multiple FMCGs running in multiple stores and get the value as actual cash not loyalty points in one central app.
According to an interview with Simon Ngigi, CEO of CashBackApp with Disrupt Africa, “Extra cash earned that goes directly back into shoppers’ pockets makes a significant difference, particularly for shoppers on a tight budget.”
On the other side of the process, the app enables FMCGs to deploy offers fast, at scale, in a cost-effective way, helping drive sales through mobile channels largely unexplored so far by FMCGs.
It also provides data and consumer insights and saves up to 50 percent in promotion communication and marketing costs. For retailers, the app is used to provide more value for their customers at zero cost to them.
CashBackApp charges the FMCGs who load cashback offers on the app and earns a commission for all the cashback redeemed. It also plans to monetize on consumer insights generated by the platform, as well as advertising.