Retailer loyalty App Loyalzoo has raised over £170,000 in just three days equity crowdfunding on Seedrs. To date 72 investors have backed the small company that hopes to raise a total of £250,002 for 12.15% equity in the company. This is the second time Loyalzoo has leveraged crowdfunding. Back in April of 2014 Loyalzoo raised £204,000 on Seedrs in less than 2 weeks – its funding goal of £120,000 was nailed in less than 24 hours. The new funding is said necessary to finance their marketing strategy and scale the business through channel partners.
“This is a business with tremendous potential. We have grown steadily since completing our first funding round with Seedrs in April last year,” said Loyalzoo CEO Massimo Sirolla. “Much has been achieved, both in terms of product development, product placement and moves to expand the potential market via commercial arrangements with merchant service providers. We are now raising a further round which will help us implement our marketing strategy.”
Loyalzoo App replaces the old school plastic loyalty cards with a consolidated App. Targeting independent restaurants and retailers, it is said to enable merchants to boost sales from existing customers up to 8% – without impacting margins. This is in contrast to the Groupon craze that hit several years ago where many merchants rushed in to give services away at almost no cost – only to never see these one and done customers ever again. All the big brands have already migrated to smartphone hosted applications, Loyalzoo wants to be the one for local and regional brands.
In March this year Loyalzoo said it became the first loyalty app to offer direct POS integration for independent retailers and the app is soon to be released on First Data’s Clover system, where it will be available to over 35,000 merchants across the US and UK.
“People can see the logic and potential in what we’re trying to achieve and there is also a great deal of empathy with a solution that improves the lot of local retailers in local communities. It’s a win-win situation – a good investment opportunity that helps improve local communities,” stated Sirolla.
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