PunchTab Raises $850,000 in Seed Funding to Build Instant Loyalty
Menlo Park, Calif. - June 1, 2011 - PunchTab, Inc. announced that it has secured $850,000 in seed funds to allow any business or website owner to create a loyalty program in minutes. Sites can immediately reward users for social sharing and ongoing engagement with customized rewards from leading brands. Participating in PunchTab's seed round were Mohr Davidow Ventures, Embarcadero Ventures, and angels Venky Harinarayan, Anand Rajaraman, and Nick Sturiale.
Philip Seyfi, owner of Japanese language instructional site, NihongoUp.com, says his 40,000 members have responded well to his business' new loyalty program created with PunchTab. “The results speak for themselves: we had a 15% increase in Facebook fan page Likes in just the first few days,” he said.
PunchTab experienced rapid growth in the month of May:
• More than 250 websites integrated PunchTab and the company reached 1.2 million consumers worldwide
• 14,000 new members signed up for loyalty programs built using PunchTab
• PunchTab's popular viral giveaway module was used to run over 100 promotional contests, some seeing over 30,000 entries
"The loyalty market in the U.S. is currently a multi-billion dollar industry and there are thousands of websites and apps that want their own loyalty program to better acquire and monetize users, but don't have the resources to create one. We’re excited to be working with the PunchTab team to bring efficiencies to the market,” said Katherine Barr, a Partner at Mohr Davidow.
PunchTab was founded in January 2011 by Ranjith Kumaran who previously co-founded YouSendIt.com, the world's leading digital file delivery company serving 400,000 paid subscribers, and Mehdi Ait Oufkir, an early member of the YouSendIt team that scaled the core platform to support 18 million registered users and over 2500 corporate deployments.
“There are over 2 million loyalty programs in the United States alone, most of which are trying to move to an online, social model; PunchTab makes this easy and allows businesses and website owners to automate the process of bringing hard-won customers back to transact again and again. We're thrilled by the lift PunchTab-powered sites are seeing in just the first five months we've been in business,” said Kumaran.
The company plans to use the seed funds to further develop its instant loyalty platform and continue to integrate with the world's leading brands, websites and mobile applications.
About PunchTab, Inc.
PunchTab is the world's first instant loyalty platform reaching over 1.2 million consumers every month across hundreds of sites that have integrated the company's loyalty programs. Using PunchTab publishers, retailers and application vendors can deploy a tightly integrated reward program to their users in minutes with no development or marketing costs. Consumers can immediately authenticate through popular social networks and start earning loyalty points that are redeemable for exclusive offers, gift cards, and custom rewards. Based in Silicon Valley, PunchTab was founded in January of 2011 by Ranjith Kumaran who previously co-founded YouSendIt.com and Mehdi Ait Oufkir, an early YouSendIt employee who went on to found JellyDo.com, a location-based reminder service for Foursquare users. For more information visit: http://www.punchtab.com/