Kenyan-based customer loyalty startup CashBackApp has raised a US$475,000 (Sh 52,012,500) pre-seed funding round to help expand its service in the country and neighbouring countries.
Formed in late-2018 and beginning operations in 2019 by Simon Ngigi and Allan Thiga, CashBackApp helps fast-moving consumer goods (FMCG) companies to build loyalty amongst customers by allowing them to earn cashback via M-Pesa on their everyday shopping.
The startup partners with FMCG companies and retailers, who use the app to reward shoppers with cashback for buying products that they promote on the app. It has achieved significant traction, with the user base growing at a monthly compounded rate of 38 percent in the first half of 2021 to reach 45,000 downloads.
On the B2B side, CashBackApp has signed up major international FMCGs as customers, including Coca-Cola, Colgate and Ajab, while the retailer network consists of eight large multi-chain retailers including Khetias, Eastmatt, Mulleys and Jamaa.
The startup has now announced a US$475,000 pre-seed funding round to help scale the service in Kenya and prepare for expansion to neighboring countries.
Institutional investors that invested in the round include Lofty Inc, Sherpa Ventures, and Loyal VC, while the round also had participation from several angel investors based in the US, UK, Nigeria and Kenya.
CashBackApp now plans to reach more than one million shoppers by December 2022
