Reworth, a Mexican startup using cashback to enable banks and retailers to understand their customers’ behavior better, recently increased its seed round to US$6.6 million. In addition to Magma, Actius, K5, and NOA Capital funds, CEOs of prominent Mexican startups (Bitso, Nowports, and Jüsto) participated in the round. With the new capital, Reworth—which already works with fintechs such as Clara, Castor, and Dinn—plans its regional expansion. Raphael Kappeler, its CEO and founder answered Contxto’s key questions.
1. In simple terms, what is Reworth?
Reworth simplifies how banks and retailers interact with their customers, enabling them to understand, predict and influence consumer behavior through cashback. We hyper-personalize and deliver retailer-funded offers to increase interaction and revenue. By delivering frictionless cashback rewards, customers are immediately incentivized, increasing their loyalty and allegiance to brands.
2. How is it different from others that have tried this idea before?
Our key differentiator is our technology and greenfield approach to how banks and retailers interact with their customers. We started from the ground up to understand how we can align the incentives of banks and retailers to deliver unique value to the end consumer. In this way, the bank can generate “hyper-personalized” offers to the right customers at the right time. This increases average ticket size by more than 30%, and card usage by more than 48%. With our business model, we reduce process friction and maximize profits. In this way, we help generate “frictionless loyalty,” rewarding customers and increasing the number of transactions.
3. What company achievement are you most proud of?
We are excited to be the first Latin American startup to be part of the Barclays Rise Growth Academy acceleration program, one of the most prestigious for fintech companies. In this way, we demonstrate that our solution is backed by one of the most innovative banks in the world to be exported. We are also very proud that bold and innovative investors see our product as redefining the game’s rules, which has resulted in the expansion of our seed funding round and brought our total capital raised to US$6.6 million to date. Finally, we are pleased to have added major financial institutions such as Castor, Clara, and Dinn in just four months.
4. Tell us a Latin American startup you admire.
At Reworth, we recognize and admire the visionary investors in the Latin American startup ecosystem. Thanks to them, the first great successes have been created, attracting top-tier talent and funding in the region. For example, Brazil put Latin America on the international funding map thanks to Patrick Sigrist’s iFoods, Sergio Furios’ Creditas, and, of course, the huge success of David Velez’s Nubank. Also, Linio and Rappi have contributed enormously to the startup ecosystem in Mexico and inspired a new generation of successful entrepreneurs in the country.
5. What is Reworth’s next step?
We are working hard after our funding round and are striving to close a bank monthly to reach 6 million cardholders and reduce integration time. We are also preparing to expand throughout Latin America. Finally, cashback is just the beginning, as we are developing innovative solutions for the future.
Main image: Pablo Martínez (CTO), Joaquín González (CRO), Chiara Sheldon (COO), Raphael Kappeler (CEO) and Federico De Simoni (CCO).
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