CashBackApp, a Kenyan-based e-commerce startup, has raised $475,000 in its pre-seed funding round.
The funds, according to the startup, would be expended on scaling its services in Kenya, as well as preparing for its expansion into neighbouring countries.
Participants in the pre-seed funding round include VC firms like Lofty Inc, Sherpa Ventures and Loyal VC. Also participating in the round were several angel investors based in the US, UK, Nigeria and Kenya.
CashBackApp was Founded by Simon Ngigi in 2019. Ngigi was later joined by Allan Thiga in the running of the startup.
CashBackApp focused on helping fast-moving consumer goods (FMCG) companies to build loyalty amongst customers.
The startup works by allowing their customers to earn cashback rewards on their everyday shopping, which is done via the Kenyan mobile money company, M-Pesa.
Speaking on the investment, Managing Partner of LoftyInc Capital Management, Idris Ayodeji Bello, said:
“Apart from helping consumers save money, they are also helping FMCGs understand their markets and customers better through quality data and actionable insights. This is in line with our investment thesis of backing world‐class teams of local Africans who are leveraging innovation to solve significant problems.”
CashBackApp has achieved significant progress within 2 years of its operation. Its mobile app has 45k downloads across app stores after experiencing a monthly growth of 38% in the first half of 2021.
The startup claims it works closely with international companies including Coca-Cola, Colgate, Ajab.
With this latest investment, CashBackApp plans to improve on its Kenyan operations, and also expand to neighbouring countries. It plans to reach more than one million shoppers by December 2022.