LoyalBlocks, a New York City-based startup hoping to make waves with its automated loyalty app, has secured $9 million in Series A financing from General Catalyst Partners with participation from Founder Collective and existing investor Gemini Israel Funds.
LoyalBlocks’ mobile marketing platform basically enables small businesses to create location-based loyalty clubs.
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By setting up an “automatic zone” at their local shops and franchises, brick-and-mortar merchants can have the (branded) loyalty app installed by their customers automatically triggered whenever they visit.
This way, users don’t have to remember to bring their traditional loyalty cards, and they can receive rewards from the places they frequent simply by walking through the door.
LoyalBlocks is available for iOS and Android.
General Catalyst’s Adam Valkin, who is joining the company’s board of directors, commented on the reasoning behind the investment:
“The fact that two billion people will soon carry smartphones fundamentally changes the game for businesses trying to attract and retain customers. What we’re seeing right now is just the tip of the iceberg.
LoyalBlocks is the first company to introduce an automated loyalty application and combined with its rich product suite and impressive momentum in the market, it has the potential to become a market leader in loyalty management solutions.”
LoyalBlocks claims thousands of businesses are already using its platform, with hundreds of new merchants signing up every month.
The company doesn’t specifically target large stores, although some franchises of major chains have already expressed interest in working with the startup.
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