Nigerian Startup Thank U Cash Secures Funding From VC Firm Microtraction
Thank U Cash is a 2017-founded startup that is tailored to provide rewards for sellers, enable merchants to accept payments from customers and reward them with instant cash back when they pay with cash or card, online or offline.
Simpler put, Thank U Cash processes payments and offers cash back to buyers every time they make a payment. The startup helps buyers save up to 50 percent on each transaction. A cash back policy like rebate would, most likely, increase customer spending. It encourages them to buy more items from the merchants.
According to Yele Bademosi who announced the development on his Twitter handle, Thank U Cash has analytics for merchant growth, and that any cash back earned can be spent at any merchant on the startup’s network, in-store or on the Thank U Cash app.
Nevertheless, this is not the only offering of the startup, as it also provides analytics that allows merchants to get to grips with their sales and what customers are more likely to purchase. To collect payments, Thank U Cash uses a sort of hybrid approach by using POS machines and online gateways.
Due to some policies, banks do not give POS gizmos to business who do not generate up to NGN 1.5 Mn, but with Thank U Cash banks can now provide the devices to businesses that raise as low as NGN 300,000.
The company was founded by Madonna Ononobi, alongside Simeon Ononobi and Suraj Supekar, and Thank U Cash now operates at more than 30 merchant locations, boasting of over 9,000 online merchants.
This is Microtraction’s fifth investment since its inception last year, and seemingly on a spree, it is its third funding in the space of two weeks. Weetracker earlier reported that the Bademosi-led firm invested in Allpro before which it pumped funds into Wallet.ng. Microtraction’s first invested in Bitkoin Afrika and CowryWise in June this year.
According to Bademosi, who is CEO of the investment firm, Microtraction has thought of different loyalty products for SMEs and merchants, but what Thank U Cash was out to accomplish was a unique solution to series of overlapping and adjacent problems. He said that the startup has what it takes to address affordability and non-consumption for POS and that Thank U Cash can make the device more accessible to lower-earning merchants with thanks to improved economic for banks and PTSPs.
The investment firm has the conviction that Thank U Cash would in the future evolve to provide financial services such as credits leveraging transaction history while as well developing APIs and partnerships with other companies.
The exact amount of funds invested was not disclosed, but Microtraction usually pumps in up to USD 65 K in startups.
This development was first reported by Technextng.