Loylty Rewardz Mngt Pvt Ltd, a Mumbai-based loyalty and rewards management company, has raised Rs 6 crore from eYantra Industries Ltd, Ventureast Proactive and Argonaut Private Equity, three leading investment firms in India. eYantra has invested Rs 2.4 crore in the company, while the individual amount of two other firms are not known.
Loylty Rewardz offers services related to the development and management of consumer loyalty, data intelligence and direct marketing communication to companies across verticals.
Now this space has seen a couple of deal activity in the past. QwikCilver, which has raised an undisclosed amount from Helion Venture Partners and Accel Partners, is into loyalty and discount cards. Other funded players in stored value card space include Prizm Payments and Itz Cash.
The company believes the funding will help it support its rapid growth and expansion in the loyalty and rewards management space.
The company further plans to raise series B funding soon to scale up its operation across India. “We will raise another round, approximately $10 million and expect it to be completed by the end of March 2010,” said Bijaei Jayaraj, CEO, Loylty Rewardz. He added that they were close to finalising the investment banker for the deal and would partner with other investors as well, apart from existing investors.
Elaborating on the risk-reward ratio in this space, Jayaraj stated that there are not too many companies in this space and unlike other companies, Loylty Rewardz is exclusively focused on consumer loyalty and relationship management. “We believe that we have a very decisive early mover advantage in the space and we want to capitalize on it,” reasoned Jayaraj.
The company is looking at regional expansion and targets to foray into more than top 10 cities in the next couple of years.
Loylty Rewardz runs a debit card based loyalty programme for State Bank Group called Freedom Rewardz across over 64 million members. Some of the other key customers of the company are Deutsche Bank, Standard Chartered Bank, Provogue, Allen Solly, Dominos, Gini and Johny.
Without divulging further details about the revenue of the company, Jayaraj said, the company expected to break even in the next 12-18 months.