Leal, the Colombian loyalty startup, raises US$3 million

Contxto – Leal, the digital platform allowing retailers to identify, engage and reward their customers, closed a US$3 million round with plans to go international.

In summary

Let me introduce you to Leal, the Colombian startup aiming to become the solution for retailers and traditional businesses to increase relations with customers. This week, the company announced its newest and freshest funding round.

FCP Innovación SP, EPM’s CVC Fund and an anonymous investor committed US$3 million to the rising startup. The goal? To launch abroad.

With this brand new capital, Leal aims to grow its affiliated commerce network and expand internationally. Right now, the startup is operating exclusively in Colombia. Make no mistake, though, it’s doing good business with over 450 partnering brands.

Seeing that Leal also has more than 1,500 points of sale and one million users, it already has quite a reputation in the South American country.

In-depth

Founded by Florence French and Camilo Martínez back in 2016, the company has been successfully operating in Colombia for just under three years now. The business partners met while earning their MBAs at the renowned U.S. graduate program at Kellog School of Management.

Prior to that, both of them were investment bankers that facilitated some M&A deals in the retail industry. This allowed them to spot the pain and opportunities for these sort of companies.

So, how does Leal work? Basically, it connects through an API to the billing and POS payment terminals. From there, Leal captures important data and consumer habits. All of this is eventually turned into analytics and business intelligence.

Based on this information, consumers can also earn reward points. These can later be redeemed for products and services with the same business they purchased from, thus creating loyalty. From restaurants to gas stations and retailers, consumers can enjoy these perks from almost every purchase they make with Leal.

While the startup already operates in 175 municipalities, averaging around 16 thousand consumers in the last 30 days, they have already set their minds to consolidating and expanding. Among the countries they want to venture into are Mexico, Panama, El Salvador and Guatemala.

With Leal, businesses can identify their customers, the frequency that clients visit stores, as well as brand perception. All in one single platform.

Conclusion

Data is everywhere. The funny thing is, though, that most of the time we aren’t even aware of the important insights within the smallest details. But just a quick heads up, there’s a lot to be gained.

Nowadays, it’s not just a privilege reserved for high-tech companies. Even brick and mortar businesses can leverage analytics and utilize tools. This way, they can also improve their processes and better manage customer satisfaction programs.

Plus, who doesn’t like a nice extra pint of beer in exchange for some data? Count me in, for sure.

-VC