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Loyalzoo, the UK’s most popular digital loyalty service for SME retailers and eateries, is raising £500,000 in funding to support ongoing growth and establishing operations in the US for the innovative, fast growing company.

Loyalzoo, named one of the UK’s top 50 most disruptive businesses by Everline Future 50, will use investment to focus on executing its go-to-market strategy and pipeline, growing US and UK presence and establishing a team in the US to work alongside the UK-based HQ. There will be a strong focus on deploying Loyalzoo across more retail POS platforms, growing partnerships, reseller engagements and merchant user base.

“We are seeking investment to ensure we can roll out as widely and quickly as possible to meet the demands of the market. With hundreds of merchants across the UK and USA, over 300,000 loyalty transactions processed to date and recurring revenues growing 12% month on month, we are an established loyalty service for small to medium sized retailers and restaurants and ready for scalable growth” says Loyalzoo CEO Massimo Sirolla.

The company has already secured most of its target amount from existing investors, and has launched on the Seedrs crowdfunding platform to secure further investment. Within the first two days the company has already raised almost 80% of its £500k target, from over 40 investors. The opportunity to invest will be live until November 30. This follows Loyalzoo’s previous crowdfunding campaigns in 2014 and 2015, which raised a total of over £450k.

The independent retail market is a major opportunity for Loyalzoo. According to Bira (British Independent Retailers Association), there are 279,000 independent retailers in the UK. And according to the NRF (National Retail Federation), there are 3.8M retail establishments in the USA. Three out of four SME retailers can benefit significantly from running a loyalty program, and with Loyalzoo it is all digital, which means no paper or plastic loyalty cards for consumers, and more actionable data for the retailer.

Loyalzoo’s appeal can be readily explained as its innovative technology enables independent merchants to run their own points or stamps based rewards program, without being part of a group scheme, and to compete in an increasingly digital world. The company’s loyalty system runs on most electronic point-of-sale terminals, making it super easy for the merchant’s staff to sign up customers to the program and issue loyalty points. Consumers can then redeem those points for rewards chosen by each merchant. On average, merchants running rewards programs with Loyalzoo see a revenue increase of 11%, from existing customers and without reducing margins.

To follow Loyalzoo’s campaign visit https://www.seedrs.com/loyalzoo3.

Note for editors

About Loyalzoo

Based in west London, Loyalzoo was founded to help small/medium sized businesses compete with larger retailers and brands in an increasingly mobile/digital world. Loyalzoo is unique in the industry, as retailers of any size can setup their own, custom made in-store loyalty program in just minutes, without the need to print cards or buy expensive hardware. It also operates directly from most point-of-sale systems, avoiding any change or disruption for merchants and their staff. Loyalzoo’s service is available directly via the company’s website www.loyalzoo.com, resellers, agents, as well as via the digital marketplaces of Clover POS, Epos Now and Lightspeed.

Loyalzoo Fundraising 2016

When we started Loyalzoo back in 2013, our guiding light was loyalty for SME’s as a panacea. We knew we had created something disruptive and game changing; a loyalty offering aimed at independent merchants which would at the same time do a lot to help the ailing high street both here in the UK and in the US.

With this idealism in mind we were purposefully pragmatic, yet very ambitious in our approach; we decided to use the latest technology to deliver something that would put the independents on par with the large retailers/brands and in doing so create a sustainable customer dialogue with multiple benefits. Loyalzoo, the digital loyalty service for SMBs and eateries is now three years old and growing from strength to strength.

As we head to 2017, we’ve seen our idea grow into more than just something viable – we see a big future ahead. There has been massive year on year growth and huge success for our merchants in the usage of their loyalty program by their customers. Loyalzoo is a very “sticky” service.

In October 2016, we are raising £500,000 in private funding and crowdfunding which will propel us to the next level; it’s a very exciting time.

The SME sector represents more than 70% of retail outlets and we want to bring them the access to technology to engage customers and drive repeat business that they need to thrive. To deliver on this promise, Loyalzoo needs to become bigger and more widely used in a much faster timeframe to counter this threat and empower them to grow.

loyalzoo fundraising 2016

It’s still a David and Goliath struggle for the independents and small chains against the big boys. We’re working hard to help stop the SME retailers from falling behind but the big brands and retail chains have the advantage. They have access to expensive mobile technology and vast reams of data, or big data, to acquire and retain more customers. Loyalzoo is needed more than ever.

We remain true to our founding principles and our focus is now on realising our exciting go-to-market strategy and pipeline. These are truly exciting times and we need to build a presence on more retail, establish more partnerships and reseller engagements to get where we want to be.

For more information on our ambitious plans for growth, visit our crowdfunding page on Seedrs where you can follow us on our £500k fund raising mission: https://www.seedrs.com/loyalzoo3.

Here’s our unofficial (but pretty accurate) tongue-in-cheek guide on how to be a tech-startup (or at least, look the part!).

  1. Laidback dress code. No suits allowed! But glam-hipster is unspokenly encouraged – effortlessly stylish is the Shoreditch uniform, and Shoreditch is the (self)proclaimed centre of the British start-up world.
  2. ‘Chill-zones’ in the office. Yeah yeah, desks are all well and good. But you seriously need a beanbag. Preferable a Fatboy – but old school bean bags are just about acceptable (Our tip – they are the next big thing because they are retro!)
  3. Activity zones in the office. As well as chilling physically, you simply Must have at least one wacky sport/game available to the employees. Ping pong is good – twister is good, old arcade games are super cool but can be anti social. TV-games are ok – as long as the games are chosen carefully – think Super Mario, not WoW. Choose with care!
  4. Untraditional office layout. Reception area, lift, hallway offices? Pffft -that’s, like, so corporate. A true start-up would choose a cheaper space, e.g. an old factory building with exposed brickwork, high ceilings, big, industrial style windows, staircases on the outside of the building (having them inside is fine, but just a bit..expected!).
  5. Flat structure. Start-ups and hierarchy are as incompatible as water and grease. There is only one level, no one with more power than others. At least on paper.
  6. Pretentious coffee. Still drinking Nescafé? Throw it out and sign your office up to a barista class immediately. Start-ups drink fancy coffee. Micro roasts, aero-press, cream and aroma are all words that should go into your vocabulary immediately.
  7. Exceptional self-belief. Start-ups have to be passionate – your product or service is the best there is. Enthusiasm and big dreams are important!

It’s not easy being a start-up. It requires a high amount of cool, chequered shirts, stylish jeans, well groomed hair, geeky-gorgeous glasses. It also requires big offices with loads of free space (for your ping pong table, duh) and a fancy coffee counter.

At Loyalzoo? We’re not quite there yet. Whilst we have tons of enthusiasm, our style is heavier on the laid-back than on the hipster-glam and we are in serviced offices. The coffee on offer is instant (but we also have builders brew). Because we’re in London the lack of space is noticeable – we have a cozy fit in the office. We don’t have games and rely on lifts to move vertically (there aren’t stairs, so this is not by choice – we’re not that lazy).

How does your start-up look like?