Loylty Rewardz Management Pvt Ltd, a loyalty & relationship management company, has raised Rs 6 crore in venture debt from Silicon Valley Bank, reports Techcircle.
The investment brings Loylty Rewardz’ total funds raised close to Rs 36 crore. The company will use the funds raised to increase its team size and to invest in technology.
In 2009, the company raised Rs 6 crore in a Series A funding round led by eYantra Industries Ltd (2.4 crore investment), Ventureast Proactive and Argonaut Private Equity. Last year in October, the company raised $4.4 million (Rs 24.27 crore) from Canaan India in a series B funding round. While the company has raised Rs 6 crore from Silicon Valley Bank, the funds raised is not through equity but as a venture debt. Venture debt is typically provided to startups which are without any positive cash flow and provides Venture debt providers to combine their loans with warrants, or rights to purchase equity, to compensate for the higher risk of default.
Loylty Rewardz was founded in 2006 by Bijaei Jayaraj and is headquartered in Mumbai. The firm provides services in activities related to the development and management of consumer loyalty, data intelligence and direct marketing communication. They also help conceptualize, develop and operate loyalty programs for companies.
The company has worked with several banks to create their customized customer loyalty program. In March, HDFC bank launched hdfcbankbusinesscards.com in partnership with Loylty Rewardz where where customers can buy airline tickets, book hotels or book their favorite movies for their employees or client entertainment and travel needs. Apart from that, it has also partnered Union Bank of India to launch Union Rewardz, the loyalty program for its debit and credit card holders. Their other clients include State Bank of India, Federal Bank, IndusInd Bank, Central Bank of India, among others. According to the report by Techcircle, the company processes around 11 million transactions on a monthly basis, which are worth around Rs 1,700 crore.
Other players: Other players in this category include Payback (previously i-mint). In 2011, MakeMyTrip (MMYT) had launched a loyalty program in partnership with Payback for its repeat customers, called MyTrip Rewards. Other companies that offer rewards and loyalty programs include Jasper, which runs a customized rewards and discounts programs for third party clients including co-branded credit cards, and had also launched its own rewards card, by the name of Money Saver Prime.