New funding will equip Canada’s Paystone with US$78.8mn total 2021 funds. Coming off of a US$54.9mn January round, the company has garnered widespread interest in its products. What it does is help service businesses set up their digital presence for loyalty programmes and e-payments. ‘We want to become their go-to destination’, said CEO Tarique Al-Ansari.
This year, Paystone entered the US market for the first time with its payments and engagement technology. Yet throughout North America, the company’s platform has 30,000+ merchant locations, which Al-Ansari thinks will grow to 35,000 by the end of 2021.
How Does It Work?
Paystone helps service-based companies—such as restaurants and other small businesses—develop strong customer reviews, launch rewards programmes, and celebrate member milestones. For example, the company recently helped Edo Japan launch an upgraded, fast, and efficient gift card programme to make the restaurant more attractive to young customers.
In addition, the pandemic accelerated how many customers find small- and medium-sized businesses via Yelp or Google. As a result, Paystone helps its clients adopt digital-first strategies. For companies who want to build better customer relationships and onboard first-time members, the firm offers email and text messaging tools. Why? Staying connected with your customers is the key to growing their loyalty.
Where Did the New Funding Come From?
Crédit Mutuel Equity, the private equity arm of Crédit Mutuel Alliance Fédérale. Though Al-Ansari didn’t intend to ask the group for funds, he had been in talks with the branch before the pandemic—so when they demonstrated interest, he took them up on their offer. Although Paystone still has funding left over from its January round, the additional money will help it hire talented developers, pursue an aggressive acquisitions strategy, and scale up its operations.
‘Paystone is on a mission to help businesses grow’, Léa Perge, investor at Crédit Mutuel Equity in Canada, told TechCrunch. ‘We were enthralled by their commitment to that mission and their focus on service-oriented verticals’. Added Al-Ansari: ‘We grow our platform with the tools that customers want’.