Karrot, a mobile loyalty app that helps consumers reduce their mobile phone bills while shopping with retailers, has launched a Crowdcube campaign to raise £500,000. The Manchester-based company has set its sights on becoming the UK’s leading mobile loyalty scheme. The investment will be used to grow the team, build the user base and on board new retail partners.
The Karrot app rewards consumers with money off their monthly or pre-pay phone bills as they shop and engage with partner retailers. It works in conjunction with all major network operators, including O2, Vodafone, Three and EE and works on both pre-pay and pay monthly accounts.
Karrot has already been embraced by some high street chains including Caffé Nero, H Samuel and Blue Inc, with other retailers joining over the coming months. Once customers have registered their payment card with the app, transactions with participating retailers are logged automatically at the point of sale or at the online checkout. Customers can then redeem points within the app, and the saving is automatically applied to their mobile account or can be gifted to friends or family.
Karrot is considered the “brainchild” of mobile technology entrepreneur Adam Ward, alongside co-founder Josh Graham. The pair previously worked at 2ergo plc where they were involved in hugely successful mobile loyalty projects with Orange (Orange Wednesday) and O2 Telefonica. Karrot has been seed-funded by 2ergo founder Neale Graham and former Chairman Keith Seeley, both of whom are directors.
Ward and Graham say that they want to use their experience in the industry to eradicate mobile phone bills altogether. Graham stated:
“We’re passionate about mobile technology and consumer loyalty and are ready to disrupt the industry. We’re now looking to raise £500,000 to fund the growth of our business and drive user acquisition. We hope to provide 4-5 times return on investment within 3-5 years.”
“I’m thrilled that we’re opening up the funding for Karrot to the Crowdcube community. Crowdcube is a hugely respected crowdfunding platform and we’re delighted that Crowdcube has as much confidence in the business as we do. We’re hugely excited about where this additional funding will take the business.”
The campaign is set to close at the beginning of December.
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