MANILA – The Kard, the company behind customer loyalty rewards app Mobkard, has raised P17 million in a funding round led by local digital OOH pioneer Globaltronics Inc.
Mobkard works like most loyalty apps, aggregating discounts and other special offers from stores. What makes its unique is its ability to alert them with deals that are closest to them using geolocation technology.
The idea won the first IdeaSpace competition in 2013, a local incubator and accelerator owned by telco giant PLDT. It initially started as an exclusive loyalty app for 14 businesses and associations like the Ateneo Graduate School, PLDT SME Nation and SM Global Pinoy but has since opened up to over 200 merchant partners to broaden its appeal.
“We saw the benefits of our service to these communities and realized that we had an amazing opportunity to make a difference in the way buyers and sellers interact through the mobile space,” Francis Uy, CEO and co-founder of The Kard.
Harder to earn than funding was merchant trust, Uy adds, saying that it’s not just enough to have a good product.
“We came up with a product that can distrupt the market. But at the end of the day, we were persistent and they saw the value of what we were providing in terms of efficiency and cost.
Among Mobkard’s current partners are big brands like Vans, LayBare, 360 Fitness Club, Bizu Patisserie, Nurture Wellness Spa, MedExpress, Sunglass Haven, and Dillinger’s.
Another challenge is educating people about the product and Uy says that’s where the fresh funding comes in. He said that a large portion of the new investment will be spent on advertising, particularly in social media and online.
“Our number one goal now is awareness. We have a really good product and promise but the people need to know it first.”
Supporting Mobikard is Globaltronics, which aside from funding, will be helping The Kard with promotion via its over 200 digital billboards across the country.
William Guido, Globaltronics CEO, told adobo that they also invested in Mobkard to grow a portfolio of assets ahead of a planned IPO in 2018. Details are tight underwraps.
“We saw that the Mobkard concept was good and can bring much-needed sustainability in the company. We are eyeing an IPO in three years and Mobikard can help bring in more investor interest,” Guido said.
Mobkard’s success is also proof of the bustling startup community in the Philippines, says Earl Martin Valencia, president of IdeaSpace.
“One of our goals at IdeaSpace is to help grow early stage startups transform to viable businesses. Getting additional investments and seeing traction are validations of what we saw when we first incubated this startup. It’s affirmation of the growing technology startup ecosystem in our country.”
