Nigeria loyalty tech venture startup ThankUCash has closed a $5.3 million seed round. The seed round was co-led by Unicorn Growth Capital and 500 Global. Other participants were Predictive VC, Expert Dojo, Accelerex Holding, Betatron, and several other angel investors.
Lagos-based ThankUCash was launched in 2018 by Connected Analytics and managed to attract a $320,000 pre-seed earlier on. The new investment will go towards enhancing its local presence in Abuja, Lagos, and Port Harcourt. There is further intent to expand into Ghana and Kenya, as well as improve product offerings and new hires.
Operating a rewards platform, ThankUCash mainly targets store businesses such as supermarkets and restaurants which run offline, rely on bookkeeping, and head knowledge when recording their customer activities in the shops. This only makes it difficult for them to provide cashback and loyalty points to their customers.
The company claims to have attracted over 600,000 users, onboarded over 1,000 stores and processed $80 million in transactional volumes. A revenue model where ThankUCash gets a 1.5% commission for customers it brings to a store to redeem a 5% cashback item.
According to TechCrunch, the company is at an advanced stage of its Kenya entry even hiring Aaron Tindiseega, a Ugandan professional with extensive experience working for leading financial institutions and tech companies.