Loylty Rewardz aims to boost B2C loyalty programme, eyes Series C round by year-end
Canaan Partners-backed Loylty Rewardz Management Pvt Ltd is looking to raise its third round of funding worth $15-20 million by the end of this year as it seeks to move beyond its existing B2B play and build a direct consumer loyalty franchise, Bijaei Jayaraj, founder & CEO of Loylty Rewardz, told VCCircle.
Loylty Rewardz offers consumer loyalty and relationship management solutions for clients in financial, retail, hospitality, online and travel sectors. It incentivises consumers for their card transactions in the form of points, which can be later redeemed through goods and services such as mobile recharge, movie tickets, air tickets, merchandise, etc.
At present, most of its business comes from business customers like banks and retail merchants whose in-house loyalty programmes are managed by the company. Currently, it has 175 customers but in the next two years, Loylty Rewardz expects to turn it around with as much as 70 per cent of revenues coming from consumer-facing loyalty programmes, according to Jayaraj.
Last quarter, the company launched its consumer brand Max Get More. While consumers can become direct members, it has also got debit/credit users of a handful of banks to become members of this loyalty programme by default.
“We have 65 million users on Max Get More, as against a total of 175 million customers across various programmes that we manage for our clients. At present, there are 400 merchants on this consumer platform, reaching out to 3,000 retail outlets, and we plan to have 25,000 merchants in the next 12-18 months,” said Jayaraj.
In the B2C segment, the company will face competition from existing players like Payback (previously iMint), which is one of the largest multi-brand consumer loyalty programmes in India.
“We are looking to raise around $15-20 million by the end of this year which will help us build a consumer brand and also help us with overseas expansion in the South-east Asia. We are already present in Singapore,” added Jayaraj.
He said this could be through additional funding by existing investors or getting new investors on board.
The Mumbai-based company was founded by Jayaraj back in 2006. In November 2009, the company raised Rs 6 crore from three investment firms including eYantra Industries Ltd, Ventureast Proactive and Argonaut Private Equity, of which Rs 2.4 crore came from eYantra. Post that, the company raised $4.4 million in Series B round of venture capital funding from Canaan Partners in October 2011. Two months ago, it raised Rs 6 crore ($1.1 million) in venture debt funding from Silicon Valley Bank (SVB).
Talking about business dynamics, Jayaraj said almost 99.9 per cent of the customers are debit card holders and that will only drive the growth going forward, compared to credit card usage.
The company records transactions worth Rs 2,100 crore every month through some 11 million transactions. This largely represents debit card transactions by consumers who are part of the loyalty programmes of Loylty Rewardz clients.
The company closed FY12 with Rs 14.75 crore in revenues and expects to hit Rs 31 crore in top line for the year ending March 2013.
(Edited by Sanghamitra Mandal)
Loylty Rewardz Management Pvt. Ltd. is engaged in providing consumer loyalty and relationship management. It offers intelligence development system, customer relationship and loyalty management platform which supports various types of programs including coalition loyalty, stand-alone loyalty, incentive, co-branded loyalty, and reward-code programs. The company was incorporated in 2006 and is based in Mumbai, Maharashtra with additional offices in Bengaluru, Delhi, Kolkata, Chennai, Cochin, Hyderabad, Chandigarh and Pune.