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!