Twid, an Indian startup working a rewards-based cost platform, has raised $12 million to scale its community of retailers and issuers and increase its answer within the South Asian market.
Rakuten Capital led the startup’s Sequence A spherical, which additionally noticed participation from Google and present buyers together with Sequoia Surge and Beenext.
Twid permits clients to pay at offline and on-line shops utilizing their present loyalty and reward factors from banks, fintech platforms and e-commerce web sites. The Bengaluru-based startup’s companions embody on-line grocer JioMart, pharmacy NetMeds, ticketing platform Yatra and music streamer Gaana.
“The issue has been quite simple and fairly giant throughout the globe, that individuals have gotten rewards from a number of locations, however they’ve primarily been very very like a locked asset,” mentioned Amit Koshal, founder and chief govt of Twid, in an interview with TechCrunch.
Koshal based Twid with Rishi Batra and Amit Sharma in 2020 to construct a community impact platform for the lots. The corporate claims to have amassed greater than 40 million registered customers.
Twid brings a “Pay with Rewards” choice that’s obtainable on the checkout web page of an internet retailer or at a retailer to let clients redeem their reward factors for his or her purchases. The reward factors, on this case, can come from an inventory of issuers, and customers can decide which loyalty program or reward factors they want to redeem.
IndusInd Financial institution, Payback and InterMiles are a few of the key reward level issuers for Twid customers. The platform additionally fetches reward factors from Flipkart to let customers make funds utilizing their SuperCoins — the time period the e-commerce agency makes use of for its loyalty factors.
Twid claims that by its issuer companions, it offers entry to greater than $1 billion in reward factors pool and has presence throughout over 50,000 retailers.
Koshal advised TechCrunch that Twid managed greater than 5-8% of the overall digital transactions of its service provider companions. The startup has additionally built-in its platform with cost gateways together with PayU, RazorPay and CCAvenue to supply the rewards point-based cost choice on a number of on-line shops.
“The thought is that we are able to management 80% of all of the redemption that occurs within the nation,” Koshal mentioned. The chief additionally claimed that retailers are actively integrating Twid’s platform as it’s serving to them purchase clients at a low price — as an alternative of luring them into making purchases after giving reductions or cashbacks.
“We give quite a lot of intelligence again to our companions; what are the sorts of classes which are doing good, what’s the common order worth that we’ve got elevated for you, what number of transactions per buyer that we’re growing for you,” Koshal mentioned. “Equally, from an issuer perspective, the issuer has good readability as a result of it’s their factors getting used.”
Twid additionally helps its issuer companions fine-tune their choices by sharing which reward factors are making quick inroads with clients.
“Once we are built-in with all these issuers, we’ve got entry to over 300 million clients from them,” he mentioned.
Twid plans to make use of the recent funds to develop its community and go deeper into the enterprise, Koshal advised TechCrunch. “The second is that we wish to construct an awesome moonshot expertise staff. So, we’re rising in all departments,” he mentioned. The corporate presently has a headcount of 42 individuals.
The chief famous that there are plans to bolster the expertise and “make investments so much” in information science. Rakuten India CEO Sunil Gopinath is becoming a member of the Twid board of administrators on behalf of Rakuten Capital.
“Rakuten Capital sees great potential and future synergies on this funding. Given our international membership merchandise are developed right here in Bengaluru by Rakuten India, I’m thrilled to hitch the Twid board of administrators and stay up for working with Amit Koshal, Rishi Batra, Amit Sharma and their very succesful staff to remodel the way in which reward factors are seen and utilized in India,” Gopinath mentioned in a ready assertion.
Twid plans to leverage Rakuten’s experience in reward factors to reinforce its platform.
“No matter their [Rakuten’s] experience is, from the sort of merchandise, platforms and so forth., they’ve constructed, the talent that they’ve achieved, these are the learnings that we might be inculcating from them to construct a really robust enterprise in India to start with,” Koshal advised TechCrunch.
In a press release to TechCrunch, Rakuten Capital mentioned that it noticed an enormous market potential for Indian-based rewards enterprise alternatives, and Twid was well-positioned to reap the benefits of this chance to construct and scale its enterprise mannequin.
“We’re additionally wanting ahead to make obtainable our tech expertise at Rakuten India who has been constructing Rakuten Group’s international reward program platforms to help Twid with creating best-in-class options for India,” the company enterprise capital arm of the Japanese firm mentioned.
In parallel with Rakuten, Google’s addition is predicted to assist Twid increase its mannequin of enabling clients to make purchases utilizing their a number of reward factors.
“Google has a protracted historical past of investing in early-stage startups throughout a wide range of industries. And we’re very excited to collaborate with credible gamers like them within the journey,” Koshal mentioned.
In July final 12 months, Twid raised $2.5 million in funding led by Beenext and Sequoia’s Surge. “What we appreciated once we met the staff and what stood out to us is that moderately than constructing out a closed-loop system, they tried to make this factor fungible and create an open-loop system,” Hero Choudhary, managing companion, Beenext, advised TechCrunch, whereas describing what made the Singaporean enterprise capital agency help Twid since its early stage.