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Once a developer gets a user, it’ll do whatever it takes to keep them. And now a company that specializes in that is expanding after a big investment.
Lootsie, a reward program for mobile apps, revealed today that it raised $3.5 million in seed funding. Investors include Pintrest product management head Tim Kendall, Anvil Capital Advisers chief investment officer Michael Liou, angel investor Anthony Saleh, and SLP Ventures founding partner Brad Schwartz. Lootsie will use the cash to expand the services it offers to developers.
In a statement, Lootsie cofounder and chief executive officer Marc Mitchell said that the company’s new investors all believe in the alternative form of user retention that Lootsie is responsible for.
The idea is to apply the loyalty programs that people are familiar with when it comes to airlines or credit cards to mobile apps. Lootsie provides real-world rewards like gift cards and discounts toward products from select brands for people who repeatedly return to partnered apps. The company is already working with brands like Fiji Water and Sol Republic.
An example of a potential reward includes a free cupcake from Sprinkles Cupcakes bakery.
Lootsie bridges the gap between apps and brands. Developers are looking to retain gamers and marketers are looking to connect with consumers in a positive way. Lootsie believes its solution creates a win-win-win scenario for all three parties where everyone gets something out of the transaction.
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