Thai cashback platform Dealcha! has recently raised an undisclosed seed funding to accelerate its growth.
New investors on board include 500 TukTuks, Solera Investment, NextTech, and angel investor Robert Lomnitz from Bangkok Venture Club.
Danny Chang, the startup’s co-founder and director of business development, said the company plans to use the latest capital to roll out new features, as well as acquiring more merchants and strategic partnerships.
Launched in 2015, Dealcha! implements an affiliate marketing model, whereby users will receive cash rebates whenever they shop online from the startup’s merchant partners.
To use the service, users only have to click through Dealcha! before they shop at their preferred online stores. Dealcha! Will then receive a commission from the merchants and share a portion of the commission to users in form of cashback.
For instance, if a cashback site earns a 5 percent commission from the merchant, 1 percent will go to the customers in the form of rebates.
Since its inception, Delcha! claims to see a 30 percent monthly growth.
According to Danny Chang, the startup’s secret to achieving growth is by“listening and talking to our customers on a daily basis, win-win partnerships, and most importantly, understanding the local market!”
Besides, Delcha! also notes that the cash back rewards model adopts a stacked approach, where cash back is given on top of any existing discounts, coupons, or credit card rebates.
While the cashback model has been adopted globally, with startups such as Singapore-based Shopback and Snapcart in Indonesia and the Philippines, the concept has yet to take off in Thailand.
“When we first started here in Thailand, many customers could not believe that they could get cash back for free, simply by shopping online,” said Dealcha!’s co-founder and CEO Jack Chaiyupatumpa.
“Over time, we have given our users, even more benefits for shopping online, such as through our partnerships with dtac Rewards and KTC Credit Card. We have also partnered with big international brands that are looking to expand in Thailand, such as Nike’s Official Store,” he added.
Prior to the seed funding round, the startup has been run through bootstrapping.
By Vivian Foo, VCNewsNetwork