FiveStars Rewarded By Series C Round Providing Fund For $50 Million In Expansion Move
By Staff Writer
Jan 24, 2016 08:38 PM EST
Regions
Users of the StartUp Lisboa Tech incubator sit with their laptops during a meeting in Lisbon, Portugal, on Thursday, Nov. 26, 2015. Portugal is starting to show off its tech strength, with a raft of startups in Lisbon catching the attention of international investors. (Photo : Patricia de Melo Moreira/Bloomberg/Getty Images)
FiveStars, a five year old startup has raised round $50 million funding and now plans to use this fund to continue its focus on 'Mom and Pop Shops'. It is also planning to expand brand and business across the US.
Instead of acquiring lots of new customers, small businesses like FiveStars may re-engage with customers through rewards and special offers. Some 10,000 merchants across the US and Canada are using FiveStars' loyalty services to track customer visits, reports TechCrunch.
10 million consumers have used the app and its site has been logged for more than 35 million visits during the last year. The figure has been summed out on the basis of its messages and reward offers. A simple promise of making consumers feel like VIPs has apparently done the miracle, according to a report published in VentureBeat.
With the recent raising of funds for $50 million, FiveStars' total fund raised stands at $105 million. Equipped with the latest round of funding, FiveStars now plans to help more consumers explore more businesses, earn more rewards, and experience VIP treatment everywhere, reports PR Newswire. The fund raising Series C round has been led by HarbourVest Partners. Previous investors Lightspeed Venture Partners, Menlo Ventures, and DCM Ventures have also been participated. FiveStars CEO and Co- Founder Victor Ho describes its overarching goal is to bring the customers back in more often. The startup merchant helps its client to extract information on customers' choice through tools like CRM and other marketing automation suites. The company seeks users' permission before accessing to anything personal like location or a Bluetooth connection. Consumers receive messages via push, sms and email from FiveStars, sent on behalf of its clients. It charges around $300 a month for its services. The charge appears to be rather high in the competitive market. But recent booming of the startup enterprise suggests that FiveStars clients also support its views that the company offers more than the received charges. FiveStars tries to turn every transaction into a relationship. Its local commerce program has become very transactional since it identifies customers with a number. So no customer is treated as a repeated one and thus brings a better experience to the customers. FiveStars, a startup company has raised $50 million funding to implement its expansion related certain programs. It has earned huge client popularity during the last five consecutive years through providing exciting offers and promises for exceptional experiences. FiveStars designed customer handling operations provide every customer feel like VIP. This appears to be the trick to attract customers in a competitive market.
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