SA-Based SnapnSave Receives Follow-On Funding Tranche From Kalon And Smollon
Kalon Venture Partners and the Smollan Group SA have upped their stake in South African startup, SnapnSave, to over 50 percent with a new funding round amounting to around USD 492 K (R7 Mn).
Venture capital company; Kalon Venture Partners, linked up with retail solutions company; the Smollan Group SA, back in August 2017 to co-invest in the cash back loyalty coupon provider. It appears the tech company has witnessed significant growth since the investment to encourage follow-on investment. And it may be on that note that duo has once again linked up to increase their combined stake in the company to over 50 percent, with the total combined amount invested now totaling up to USD 983 K (R 14 Mn).
SnapnSave is a shopping community that facilitates discounts for shoppers on their favorite products, wherever they shop, just by snapping a photo of their till slip. The Cape Town-based startup is believed to have helped shoppers on its platform to redeem its one million till slip three months ago. As covered in an earlier publication on WeeTracker, the company enables the deals by leveraging its expansive network with brands. SnapnSave is believed to have a working understanding with numerous consumer brands, including global giants like Coca-Cola, Johnson & Johnson.
In a statement released to WeeTracker, Clive Butkow, Chief Executive at Kalon Venture Partners revealed that half of the initial R14-million in funding pledged have been invested into the startup. He also offered that the investors have decided to invest the remainder of the committed funding on the backs of a number of impressive milestones reached by the South African company.
As per the specifics of the investment, both Smollan and Kalon have invested around USD 246 K R 3.5 Mn each for a second tranche investment worth USD 492 K (R 7 Mn) in total.
“We prefer not to discuss our ownership percentages except to say (that) between Kalon and Smollan we are above 50%,” remarked Butkow.
The main clients of SnapnSave are the majority of the FMCG brands, as well as a number of insurance companies. Momentum and Discovery provide the solution to clients who make use of their Multiply and Vitality loyalty schemes, respectively.
Closing-In On Break-Even Point
Butkow said the startup, which Bradshaw founded in 2015, has almost reached the break-even point. On his own part, Mark Bradshaw, Founder and CEO of SnapnSave, offered that the startup now has 25 staff at the moment, which is a growth from the 15 on its roster in August last year.
He also gave the indication that the startup is currently in the middle of talks which will see it offer a white label service for client rewards to a fishing group, a retail outlet, and a local bank, while stating that the new funding round will be used to grow the local market, as well as branch into new ones.
Image Source: kalonvp.com
