500friends, a Y incubator startup located in San Francisco, announced that the company has raised $5 million in Series B funding. The company mainly dwells in ecommerce and marketing. This round was led by existing investors Intel capital and Feng Capital, along with the previous investor Crosslink Capital. Apart from this, the company has also raised $2 million in debt funding.
The company provides a service called LoyaltyPlus that allows stores to interact with customers, and various rewards shared by the company. The company categorizes the needs of the company into various segments that each one of them prefer. Retailers use the LoyaltyPlus for services like buildings, jewellery, and shoes etc.This has increased the sales by 60 percent.
Yoshimura, CEO, 500friends; states that the company has taken an initiative of sending alerts to customer’s mobile phones, about their loyalty programs at the nearest locations that the customers are. The CEO further says that the adoption of the services have increased from 22 to 35 percent.500friends will be reaching out to those retailers who are not yet customers, being confident that they will be customers. Lastly he makes a note that the program LoyaltyPlus is there for healthy competition. “I keep telling them, ‘Listen, do you really think you’re going to out-discount Amazon?” Yoshimura said, as reported by TechCrunch