MOGL, a customer loyalty platform that’s all about psychology and game mechanics, has raised its second institutional round of funding.
The $10 million round brings the startup’s total amount of venture capital raised to $12.4 million. The new funding round was led by Sigma Partners, with participation from Austin Ventures and Avalon Ventures.
Naturally, the new cash will be used for hiring and bringing more features to the platform. I know, we’re shocked, too.
“We’ve been tracking MOGL for months and have watched the company exceed our expectations again and again,” said Sigma’s Pete Solvik in a release.
Sponsored by VB
“In less than nine months from launch time, the MOGL team has generated an explosive response from both consumers and restaurant partners, while effectively positioning itself as the most innovative loyalty platform of its kind. In fact, MOGL is the first loyalty program that we would actually use ourselves, and we are excited to be able to play a part in the company’s ongoing success.”
MOGL’s product is a bit complicated to understand, but here’s why VCs thought the startup deserved the $10 million: The app combines competition, cash-back incentives and prizes, and social good elements (the ultimate hook for the overprivileged).
MOGL automatically donates a meal to a person in need each time a MOGL user spends $20 through the app at a partner restaurant. So far, the company says more than 27,000 meals have been donated and more than $350,000 cash-back rewards earned by its users.
The app tracks credit and debit card transactions; users pay any restaurant bill with a MOGL-tracked card and the rewards (and donations) get tallied. The app can also find nearby participating restaurants. For restaurants that partner with MOGL, the startup also offers data on their customers and ROI.
The San Diego-based company launched in April 2011 and has partnered with nearly 350 SoCal restaurants so far.