LoyalBlocks announced today that it had raised $9 million in its first round of funding. The loyalty marketing solutions company plans on using the capital injection to expand U.S. operations and continue developing its platform for small and medium-sized businesses.
The company was founded in 2011 by Ido Gaver and Eran Kirshenboim and is headquartered in both New York City and Tel Aviv.
LoyalBlocks has two main products that complement one another. The first is their merchant-focused loyalty marketing solution, which enables brick-and-mortar businesses to build an app, set up a base station in their store, and select rewards programs to offer customers. The second product is an app targeted at mobile phone wielding consumers. The base station set up in the business automatically sends rewards to the customer as soon as they walk in the door.
The platform also provides for Facebook integration and smart punch cards that clients can access on customers’ mobile phones. As with other services, the smart punch cards are automatically “stamped” as the customer with the LoyalBlocks app installed on their phone walks into the store.
“We have taken mobile loyalty to the next level by making it easy for merchants to give their clients more, automatically. From a business perspective, it is an incremental layer of marketing that leverages their day-to-day activities. It is a simple, innovative and effortless way of generating more business and establishing long term customer loyalty,” said Ido Gaver, the company’s co-founder and chief executive, in a press release.
General Catalyst Partners led the series A investment round, with participation from Founder Collective and previous investor Gemini Israel Ventures.
The company also announced three additions to its board of directors: General Catalyst Partners managing director Adam Valkin, Gemini Israel Ventures managing partner Yossi Sela, and mySupermarket chief executive Allon Bloch.
Photo credit: LoyalBlocks