Gurgaon-based EasyRewardz Software Services Pvt. Ltd, which offers solutions for consumer loyalty management to brands, has raised $2 million (Rs 13 crore) in a Series A funding round led by Trans-Continental Venture Fund.
Existing angel investor Jitendra Gupta, managing director at fintech firm PayU; and new angel investor Vinay Chatlani, co-founder and CEO of apparel firm Soch; also put money in this round, the startup said in a statement.
The round also saw participation from a number of individual investors through Mumbai-based funding platform Venture Catalysts. These investors are Jagdish Gothi of Kamdhenu Retail, Vikas Kapoor of Rivoli Fashions, Nitin Bardia of AT Jewellers, Ankit Kankariya of Sumeet Jewellers and Akash Gajwani of Diaa Global.
EasyRewardz will use the funds to develop its products and expand its sales and marketing efforts in India and overseas.
“While brands often focus on acquiring new customers, it is significantly cost-effective to retain an existing customer than to acquire a new one,” Chatlani said.
EasyRewardz was founded in 2011 by Soumya Chatterjee, Angad Singh, Sapan Kadakia and Tejas Kadakia.
Chatterjee, who is also the CEO, is a computer science engineer and was previously the chief technology officer at fashion e-tailer Yebhi. Sapan is an alumnus from the Mudra Institute of Communication and earlier worked at Capgemini as a consultant. Tejas is a postgraduate in electrical and computer engineering from Syracuse University and earlier worked at BNP Paribas and TCS. Singh is an alumnus of IIM Indore and earlier worked at EY, Barclays Bank and KPMG.
EasyRewardz offers loyalty programme management solutions to businesses through a marketplace that allows customers to enrol into multiple schemes, track points and rewards, and redeem those points.
The company claims its solutions help clients improve customer retention, increase average transaction value, acquire new customers and defer discounting. Its clients include RBL Bank, Kotak Mahindra Bank, Genesis Luxury, Spykar, Soch, Mufti, V-Mart, Pizza Hut, PVR, Himalaya Wellness and VIP Industries.
A few other startups that provide loyalty or customer engagement solutions have also raised funding in recent months.
In July, One 97 Communications Ltd, the parent of digital wallet firm Paytm, invested an undisclosed amount in Noida-based mobile loyalty and data analytics startup Mobiquest Mobile Technologies Pvt. Ltd.
In March, loyalty rewards app mPaani Solutions Pvt Ltd raised $1.35 million in a pre-Series A round led by IDG Ventures, Blume Ventures and Saha Fund.
Mumbai-based Trans-Continental Venture Fund is a sector-agnostic investor that participates in investment rounds of around $1 million, according to its website. Its portfolio includes companies such as restaurant chain Maroosh and auto-parts supplier Anandji Haridas & Co. Pvt. Ltd.
Venture Catalysts operates in seven cities—Delhi, Mumbai, Bengaluru, Kolkata, Lucknow, Raipur and Surat. The Mumbai-based firm typically invests $100,000 to $500,000 in early-stage startups.
Last month, it invested $500,000 in energy drinks startup FYRE, which is operated by Mumbai-based Triquetrus Essentials Pvt. Ltd and an undisclosed sum in fintech startup HomeCapital, which provides down payment to first-time home buyers.