Latam VC firm ALLVP leads a $2,8 seed round for Reworth
Summary
Reworth seeks to help banks and fintech companies activate their passive customers by connecting them with merchants through cash rewards, or cash back; that is, the possibility to return a percentage of a customer’s purchase through a fully integrated API. The round was led by the Latin American VC firm ALLVP, with the participation of New York-based FJ Labs; Soma Capital, based in San Francisco, and Gilgamesh; also based in New York. This new round brings Reworth’s total raised to date to about $ 3.2 million. According to research by Aberdeen Group, a leading analyst firm, companies that offer rewards (such as cashback) “can generate more annual revenue and higher profitability per customer.” Specifically, rewards-based promotions can outperform discounts by generating better purchase intent and increased sales without damaging the brand’s perception if they do discounts. It is a key incentive for the banking sector and fintech companies.