CashBackApp, a Kenyan customer loyalty startup, has raised a pre-seed funding round of US$475,000 to help scale its service in Kenya and prepare for expansion into neighboring countries.
CashBackApp was launched in late 2018 by Simon Ngigi, who was later joined by Allan Thiga, to enable fast-moving consumer goods (FMCG) companies increase customer loyalty by allowing users to earn cashback via M-Pesa on their everyday shopping. It started operating in 2019.
The startup partners with FMCG companies and retailers, who use 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 retailer network includes eight prominent multi-chain retailers such as Khetias, Eastmatt, Mulleys, and Jamaa.
The startup has recently announced a pre-seed funding round of US$475,000 to enable scale the business in Kenya and prepare for expansion into neighbouring 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.
By December 2022, CashBackApp intends to have reached over one million users.