Loyalzoo, a U.K. digital loyalty service for SME retailers and eateries, is raising £500,000 in funding to support ongoing growth and establishing operations in the U.S.
In a press release, Loyalzoo said it will use the investment to focus on executing its go-to-market strategy and pipeline, growing U.S. and U.K. presence and establishing a team in the U.S. to work alongside the U.K.-based headquarters. There will be a strong focus on deploying Loyalzoo across more retail POS platforms and growing partnerships, reseller engagements and merchant user base.
“We are seeking investment to ensure we can roll out as widely and quickly as possible to meet the demands of the market. With hundreds of merchants across the U.K. and U.S.A., over 300,000 loyalty transactions processed to date and recurring revenues growing 12 percent month on month, we are an established loyalty service for small to medium-sized retailers and restaurants and ready for scalable growth,” said Loyalzoo CEO Massimo Sirolla in the press release.
The company has already secured most of its target amount from existing investors and has launched on the Seedrs crowdfunding platform to secure further investment. Within the first day, the company has already raised almost 80 percent of its £500,000 target from over 40 investors. The opportunity to invest will be live until Nov. 30. This follows Loyalzoo’s previous crowdfunding campaigns in 2014 and 2015, which raised a total of over £450,000 in just a few days.
The independent retail market is a major opportunity for Loyalzoo. According to the British Independent Retailers Association, there are 279,000 independent retailers in the U.K. And according to the National Retail Federation, there are 3.8 million retail establishments in the U.S., the company said in the press release. Three out of four SME retailers can benefit from running a loyalty program, and with Loyalzoo it is all digital, which means no paper or plastic loyalty cards for consumers and more actionable data for the retailer.