Online shopping rewards app ShopBack is hoping to fuel its expansion with a $150 million funding round that would value the startup at roughly $1 billion.
As Bloomberg News reported Wednesday (Feb. 16), sources close to the matter say the Singapore-based company is working with Morgan Stanley on the funding round. One person close to the discussions say the funding size could change. Representatives for ShopBack and Morgan Stanley declined to comment, Bloomberg said.
Backed by Temasek Holdings Pte and investors such as SoftBank Ventures Asia and Rakuten Capital, ShopBack offers cashback and other rewards for brands and retailers that include Lululemon, Dyson and Foodpanda.
ShopBack’s app provides cash back in numerous categories, such as travel, general merchandise, food delivery, groceries, fashion, health and beauty, as well as entertainment, dining and in-store sales. The platform operates in 10 markets across Southeast Asia.
According to a 2021 research paper by Google, Temasek Holdings Pte and Bain & Co., the region’s internet economy is projected to double to $363 billion by 2025.
Last year, ShopBack acquired buy now, pay later (BNPL) company hoolah, giving ShopBack users a BNPL option and letting hoolah access a pool of more than 8,000 retailers and 30 million shoppers across the Asia-Pacific region.
“We see significant synergies between ShopBack’s and hoolah’s product lines. Together as one, we unlock value by providing a broader platform of new capabilities and services for shoppers and merchants alike,” said Henry Chan, ShopBack co-founder and CEO, at the time. “Shoppers get the best deals and rewards, and more flexible payment options, on a single platform. Merchant partners can access a large pool of high-intent shoppers.”
In 2020, ShopBack raised $75 million in a Series B round, funding the company said would help develop new features, boost its data capabilities and support its technology infrastructure.