Nigeria’s ThankUCash secures $5.3M to build infrastructure for cashback, deals and BNPL services

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Loyalty, deals and rewards services are rare in most African markets. Unit economics and other factors such as currency volatility make it difficult for such businesses to be pulled into the sector.,

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So far, thank you cash, a platform launched in 2018 Connected Analytics, has managed to flourish, proving that not everything is sad in the business of deals, coupons and rewards, And to that end, the startup, which last year announced an undisclosed seven-figure seed, has finally closed the round at $5.3 million.,

VC firm 500 Global and Unicorn Growth Capital co-led seed round of Lagos-based company, It saw participation from US-based accelerator Expert Dojo, Predictive VC, SaaS Growth Ventures, Betatron Venture Group, Accelerex Holdings. Individual investors such as former HSBC CEO Andrew Dell and Google UK’s Craig Fenton also participated.

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The company plans to use the investment to expand its domestic market in Nigeria – where it operates in Lagos, Port Harcourt and Abuja – and outside Ghana and Kenya. It wants to improve its product offering and add more employees.

Over the years, stores in Nigeria such as supermarkets and restaurants have operated offline, relying on bookkeeping and key knowledge to record the movements of their customers in their stores. This made it difficult to give customers cash back and loyalty points,

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Online platforms like ThankCash provide an opportunity for these merchants to delve into the rewards and help them maintain loyalty and increase revenue.

CEO Simeon Ononobik Started ThankCash with Suraj Supekar, Madonna Ononobi and Harshal Gandole, who serve as Chief Technical Officer, Chief Operating Officer and Senior Vice President of Engineering. respectively,

The multi-merchant rewards platform (meaning customers can hop from one merchant to another to earn loyalty points) allows customers to shop anytime with thousands of merchants listed on its app.

Raises $320,000 pre-seed after grabbing business accelerator focus Like 500 Startups, Google Launchpad and other local investors like Microtransactions and Ventures Platform.

To this point, ThankCash said it has recorded over 600,000 users and added over 1,000 stores to its platform., Furthermore, it claims to have processed over $80 million in transaction volume.

As a business matures, Ononobi and his team want to take on a more complex task: building the infrastructure for companies that want to provide similar services.

“We are creating solutions that help SMEs succeed, while increasing consumer purchasing power and opportunities. We want to build an infrastructure for rewards, loyalty, deals, buy now, pay later, cashback,” he said on a call to Nerdshala,

“Cashback was our low hanging fruit and an entry point. We’re still going to have deals, coupons, gift cards, buy now, pay later, anything that will help the business grow, but at the same time, allow the consumer to increase their buying opportunities.

Ononobi, a serial entrepreneur who previously created a payments company and also created apps for Nigerian banks and the government, believes ThankCash will do the same thing to reward what Flutterwave and Paystack have done for payments in Africa. did.

Some companies like banks have in the past introduced cashback programs for users through debit cards, But most of them have generally been incompetent, from setup down to collection and redeeming of points, and Ononobi argues that their inefficiencies boil down to no technical support. ThankCash Sees a Gold Mine to Provide Plugins Banks and Fintechs Can Tap to Offer Cashback and Rewards,

thank youcash cofounders

Buy now, pay later is a bit unclear as there are only a few major BNPL services in Africa. howeverThe company seems to be setting itself up for an imminent proliferation of such services fueled by similar developments globally, where buy now, pay later services have seen a boom as a result of pandemic-driven consumer behaviour.

“The technology is such that we have our machines in the store. So as soon as the customer requests a loan, we generate a code for it, the customer inputs it into the POS machine and the merchant gets the credit straight, code only used in selected stores and only for the requested loan amount, as at the end of the day the customer is buying directly from merchants,” explained the founder, who also mentioned that his startup may offer buy now, later services. may pay itself in future.

The consumer-facing platform of ThankCash will continue to operate. But to up the infrastructure game, it has signed a partnership with payments company Interswitch to add its merchants.

company, whatever in the process Integrating with payment gateways, said some bank partnerships are in its pipeline.

In terms of how ThankCash makes money, merchants pay a fee to the company on each Negotiate Made in their store. For example, ThankCash gets a 1.5% commission for every customer brought into the store to redeem a 5% cashback item. The Lagos-based company also charges commissions for deals and plans to charge a “heavy onboarding fee” for businesses that want to use the API for their services, including Buy Now, Pay Later.

ThankCash has perfected an offering: a cashback product where merchants can get more walk-in customers. It is improving the range of deals, allowing merchants to sell products faster (by hiring former manager of dealday, a Nigerian Dormant Deal company). And while currently building out its buy later pay later infrastructure (which gives businesses the opportunity to sell products regardless of whether customers have the money or not), ThankCash plans to add a fourth offering soon. : a remittance product where merchants can sell straight to the overseas Indians.

The chief executive does not give details about this product. During this, its investors, who have doubled down on keeping such information a secret, are excited A comment made by Amit Bhatti, Principal of 500 Global, a co-principal investor, regarding the “continuous growth of the company”.

“Since going through the accelerator of 500 Global in 2019, we have affected by The progress of Simeon and the ThankCash team in implementing a rewards system that works for Nigerian consumers, regardless of cash or credit or online or offline payments,” said the principal. “It’s also a win-win for businesses and banks, because TUC gives them the tools and data they need.”

The 45-man team has hired Aaron Tindicega to lead its expansion into Kenya and the East Africa region, Ugandan professional with experience working for banks and technology companies such as Uber, Standard Chartered Bank and Stanbic IBTC, For its expansion in Ghana, Kiki Anku, who has worked at Apple and a few startups, will lead the work.

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