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Nigeria-based technology startup, ThankUCash, has raised $5.3 million in seed funding, TechCrunch reported.
ThankUCash is a multi-merchant loyalty and cashback platform co-founded by Simeon Ononobi, Madonna Ononobi, Harshal Gandole and Suraj Supekar.
Through its platform, the startup connects customers with businesses, helping owners grow their revenue and assisting customers to get the best deal and earn cash back on every purchase made.
It currently operates in the three major Nigerian cities of Lagos, Port Harcourt and Abuja.
Since its launch in 2018, the startup has raised about $5.4 million in funding, including pre-seed funding of $320,000.
The latest funding round was led by two U.S,-based VC firms, 500 Global and Unicorn Growth Capital. Other investors include Expert Dojo, Predictive VC, SaaS Growth Ventures, Betatron Venture Group and Accelerex Holdings.
Individual investors that participated in the round include former HSBC CEO Andrew Dell and Craig Fenton of Google UK.
The startup claims to have processed more than $80 million worth of transactions from about 600,000 users since it launched. It has also onboarded over 1,000 stores on its platform.
The $5.3-million round will be deployed for expansion within and outside Nigeria’s shores. The firm is considering entering Ghana and Kenya and has already hired Ugandan professional Aaron Tindiseega to structure its plans for those markets.
The startup will also use the funding to in strengthen its talent bank and deepen its product offerings.
Ononobi said: “We are creating solutions that help SMEs succeed while increasing consumer buying power and opportunities. We want to build an infrastructure for rewards, loyalty, deals, buy now, pay later, cash back.”
“Cashback was our low hanging fruit and an entry point. We’re still going to go into deals, couponing, gift cards, buy now, pay later, anything that will help the business grow, but at the same time, allow the consumer increase in opportunities of buying,” he added.
