Kenyan CashBackApp Secures $475K Pre-Seed Funding to Fuel Expansion
CashBackApp, a Kenyan e-commerce startup, has successfully closed a $475,000 pre-seed funding round. This investment will fuel the company’s expansion within Kenya and pave the way for its entry into neighboring East African markets. This news marks a significant milestone for the burgeoning African tech scene, demonstrating continued investor confidence in innovative solutions tailored to the continent’s unique needs.
Driving Customer Loyalty Through Cashback Rewards
Founded in 2019 by Simon Ngigi, and later joined by Allan Thiga, CashBackApp addresses a key challenge for fast-moving consumer goods (FMCG) companies: building customer loyalty. The platform achieves this by offering cashback rewards on everyday shopping purchases. Customers who buy products promoted on the app from partnering supermarkets receive rewards that are then distributed through M-Pesa, Kenya’s leading mobile money platform. This innovative approach has resonated with consumers, leading to significant traction. The app has garnered 45,000 downloads to date, reflecting substantial growth, particularly a 38% average monthly compounded rate in the first half of 202- in user base. The funding round attracted investment from prominent firms like Lofty Inc, Sherpa Ventures, and Loyal VC, and was further supported by a group of angel investors hailing from the US, UK, Nigeria, and Kenya.
In conclusion, CashBackApp’s successful fundraising underscores the growing appeal of e-commerce and fintech solutions within Africa. The company’s commitment to customer loyalty and its strategic use of mobile money demonstrates a clear understanding of the Kenyan market and positions it well for future growth. The investment signals a positive trend for African startups, highlighting the potential for innovative ideas to attract significant capital and create lasting impact.
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