ShopBack Raises Millions to Fund Newest Ventures

By Hannah Ainsworth | 10 Apr 2019

When ShopBack hit Australian shores in 2018, not a whole heap was known about the company whose aim was to “create a world of smart shoppers.” If their latest announcement is anything to go by, they are well on their way to achieving this.

Since its introduction to Australian consumers in May 2018, ShopBack Australia has seen over 300,000 sign ups and nearly a 1,300 percent increase in purchases made by smart shoppers via the ShopBack app. All of this in less than a year, making it clear that ShopBack has opened Pandora’s box in the retail world. What shopper doesn’t want to be rewarded in monetary value for making purchases? In a world that is all about making your money work for you, ShopBack has certainly made this possible.

With its latest round of funding, ShopBack has managed to secure US$45 million, welcoming new investors EV Growth and Ebates, Inc. Also contributing to this latest round of funding is existing investor Qualgro. Wilson Cuaca, managing partner of EV Growth, will join ShopBack’s Board of Directors.

This new capital injection will bring the company’s total funding to US$83 million; all this in the lead up to the company’s first year in market. This again reaffirms ShopBack’s success at tapping into a sector of the retail industry that had been untouched. According to ShopBack, in 2018 the entire company saw a 250 percent year-on-year growth in orders and sales. The company powered over 2.5 million monthly transactions for more than seven million users in seven Asia Pacific countries and delivered close to US$1 billion sales for over 2,000 merchant partners in both online and offline spaces.

So how will this latest boost of funding be distributed? The funding will be deployed into simplifying shopping experiences, expanding data capabilities, to fuel personalisation and business insights, as well as accelerating growth in key markets. In short, the funds will extend into all areas of business that retailers need now to ensure their business stays relevant and profitable in an ever-changing, and highly competitive market.

Angus Muffet, country general manager of ShopBack Australia has said of the funding boost, “As we turn our attention to further business growth, the funding we have received will be used to drive three key areas of development. We will continue building our teams in Asia-Pacific, launching new product features, and establishing our market leadership in each of the regions where we have a presence.”

ShopBack, whilst highly consumer driven, needs to also consider the needs and benefits to the merchants and this is something that Muffet says is also a key part of their brand. “We are now better equipped to not only deliver cost-efficient sales to our merchant partners, but also to leverage user insights across categories to do cross-selling efficiently.”

ShopBack’s rapid growth is exciting for the industry and something that Managing Partner of EV Growth, Willson Cuaca, reaffirms, “We are constantly energised by ShopBack’s rapid growth since its early days in market. We are excited for them to maximise Asia Pacific’s extraordinary growth potential and propel further.”

Whether ShopBack will live up to the hype is something only time will tell. But, for now we can open our wallets and finally be rewarded for our dedication to shopping!

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