South African startup SnapnSave, which has developed a cashback grocery coupon app, has raised an undisclosed amount of funding from Vunani Capital as it builds towards its Series A round.
SnapnSave, which gives shoppers cash back on their favourite products, wherever they shop, just by snapping a photo of their till slip, secured ZAR14 million (US$980,000) in funding from Kalon and Smollan in 2017, taking in the second tranche of that investment last November.
The startup has seen significant growth since it was launched in 2015, and now has more than 350,000 users that have submitted over 1.5 million till slips and earned more than ZAR14 million (US$950,000) in rewards.
Its latest round of funding, which comes from VC firm Vunani Capital through its fintech-focused fund, will be used to further grow and scale the shopper and vendor base of SnapnSave as it builds towards a Series A round.
“We are delighted to be working closely with the team at Vunani. Their expertise in understanding corporate finance and their relationships in Africa will aid the company as we prepare for a Series A raise that will allow us to expand into new markets in 2020,” said SnapnSave co-founder Mark Bradshaw.
Vunani executive director Mark Anderson said his company was delighted to acquire an equity interest, at an undisclosed valuation, in SnapnSave.
“This investment offers the Vunani group exposure to a new wave of fintech businesses that are using digital platforms to bring benefits to ordinary consumers,” he said. “SnapnSave is our first fintech investment. We are expecting to enter into more transactions in the fintech space as we diversify our financial services offering.”
Bradshaw’s fellow SnapnSave co-founder Tina Fisher said with over 200,000 grocery retail points in South Africa, it was clear that shoppers in the market do not just shop at one store for their favourite grocery items.
“With promotions in retail traditionally being store-specific, more and more shoppers are signing up for SnapnSave to benefit from cash back savings available at any retailer. Leading brands like Coke, Pioneer Foods, Unilever, SC Johnson and more are working closely with SnapnSave to engage with these shoppers,” she said.