CashBackApp, a Kenyan customer loyalty firm, has 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.
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.
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,” Ngigi said.
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. Ngigi said it also plans to monetize on consumer insights generated by the platform, as well as advertising.
As stated earlier the new funding will help the company expand into new markets with a focus on the East African countries first.
In an interview with Disrupt Africa, CashBack CEO, also stated that the company was focused on doing business in the Kenyan Market starting with Nairobi, where it plans to demonstrate the value of the platform and then scale elsewhere in the country eventually expanding to neighboring East African countries, then to the bigger countries like Ethiopia and Nigeria, and then to the populous North African countries like Egypt.
Cashback Mobile is among the 7 first companies who recently joined our community at Nairobi Garage Westlands. We opened Nairobi Garage Westlands at the Delta Corner Annex at the beginning of July.
This was in response to the growing demand for shared workspaces in Nairobi. This new location offers 17 private offices, 40 coworking desks, 5 booths for phone calls and quiet work, and 7 fully fitted private board rooms as well as unique and spacious common spaces.
This new location is an addition to our existing 3 locations, in Karen, Kilimani & Spring Valley. Just over a month later our space is booming with activities and more companies are joining our community.