CashBackApp: Story, Founders, Investors & Funding Rounds
Formed in late-2018 by Simon Ngigi, who was later joined by Allan Thiga, CashBackApp helps fast-moving consumer goods (FMCG) companies to build loyalty amongst customers by allowing them to earn cashback via M-Pesa on their everyday shopping.
They started CashBackApp in 2020 to help middle to lower-income consumers in Africa save on their everyday grocery shopping given the inflationary pressures and reducing wages.
They began by connecting these consumers to Fast-Moving Consumer Goods (FMCG) companies to enable them to create customer loyalty while helping the consumer save through cashback discounts via mobile money (M-Pesa) in all Nation Wide and Regional Supermarkets.
CashBackApp has since expanded from supermarkets to providing the service in Mtaani Dukas i.e. (Neighbourhood shops) with its solution for general trade CashBack Mtaani.
They are now adding more services like restaurants, beauty shops, financial services, etc. The vision is to help the consumer every time they spend money.
They now serve customers all over Kenya and are thrilled that they can turn their passion into meaningful shopping experiences for consumers.
The startup partners with FMCG companies and retailers, who use the app to reward shoppers with cashback for buying products that they promote on the app.
It has achieved significant traction, with the user base growing at a monthly compounded rate of 38 percent in the first half of 2021 to reach 45,000 downloads.
On the B2B side, CashBackApp has signed up major international FMCGs as customers, including Coca-Cola, Colgate, and Ajab, while the retailer network consists of eight large multi-chain retailers including Khetias, Eastmatt, Mulleys, and Jamaa.
How it Works
To get points and earn on CashBackApp, shoppers just need to download the app and view cashback offers from loaded retailers.
They then physically buy those products from participating retailers’ outlets, and obtain the receipt that proves the purchase.
They can then use the app to scan the barcode on the receipt to claim their cashback.
CashBackApp initially launched a pilot with CleanShelf, a tier-two retailer, then gradually added other retailers to its platform.
The app also enables FMCGs to deploy offers fast and affordably, helping drive sales through mobile channels largely unexplored so far by FMCGs.
It also provides data and consumer insights and saves up to 50% in promotion communication and marketing costs.
CashBack. The app charges the FMCGs who load cashback offers on the app and earns a commission for all the cashback redeemed.
For retailers, CashBackApp is used to provide more value for their customers at no value to the retailers.
It also enables FMCGs to deploy offers fast in a cost-effective way to drive sales through mobile channels largely unexplored so far by the companies, while also providing data and customer insights and up to 50 percent savings in promotion, communication, and marketing costs.
For the shoppers, gain access to a rich basket of offers from multiple FMCGs running in multiple stores and get the value as actual cash in one central app.
This extra cash earned in the form of M-Pesa goes directly back into shoppers’ pockets making a significant difference, particularly for shoppers with a tight budget.
Simon Githinji Ngigi
Simon Githinji Ngigi is the CEO and Founder CashBackMobileApp.
He attended INSEAD.
Allan Thiga is the Co-Founder and COO of CashBackApp.
He previously worked at Lynk Kenya as a Director – Of finance.
Allan Thiga attended Villanova University.
Investors & Funding Rounds
LoftyInc Capital Management, Sherpa Africa Partners, Loyal VC
CashBackApp has raised a US$475,000 pre-seed funding round to help scale its service in Kenya and prepare for expansion to neighboring countries.
Institutional investors that invested in the round include Lofty Inc, Sherpa Ventures, and Loyal VC, while the round also had participation from several angel investors based in the US, UK, Nigeria, and Kenya.
CashBackApp now plans to reach more than one million shoppers, and 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 their investment thesis of backing world‐class teams of local Africans who are leveraging innovation to solve significant problems.
The start-up hopes to eventually expand to neighboring East African countries, then to the bigger countries like Ethiopia and Nigeria, and then to the populous North African countries like Egypt.
In the meantime, however, the focus is to capture and maintain local customers in the local market in Nairobi and other parts of the country.
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