CashBackApp, founded in late 2018 by Simon Ngigi and later joined by Allan Thiga, enables fast-moving consumer goods (FMCG) firms to develop customer loyalty by letting users earn cashback via M-Pesa on their regular purchases. It started operating in the year 2019.
The business collaborates with FMCG companies and merchants, who utilize the app to provide rewards to customers who purchase items that they advertise on the app. It has gained a lot of traction, with 45,000 downloads in the first half of 2021, thanks to a monthly compounded rate of 38 percent.
The company has recently announced a pre-seed investment round of US$475,000 to assist expand the business in Kenya and prepare for expansion into neighbouring countries. Lofty Inc, Sherpa Ventures, and Loyal VC were among the institutional investors in the round, which also included angel investors from the United States, the United Kingdom, Nigeria, and Kenya.
By December 2022, CashBackApp hopes to have reached over one million users.
“We are excited to invest in Simon and his team at CashBackApp as they are solving a big problem that affects most middle to low-income households in Africa – how to reduce the ever-increasing food and shopping budget,” said Idris Ayodeji Bello, managing partner of LoftyInc Capital Management.
“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.”