CashBackApp, a Kenyan customer loyalty startup, has raised a pre-seed fundraising round of US$475,000 to help scale its service in Kenya and prepare for expansion into neighboring countries.
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.
CashBackApp, founded in 2018 by Simon Ngigi, enables fast-moving consumer goods (FMCG) firms to create customer loyalty by allowing users to earn cashback via M-Pesa on their everyday purchases. It started operating in 2019.
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 2022, CashBackApp hopes to have reached over one million users.