ThankUCash, a Nigerian rewards startup, has raised $5.3 million in seed funding for expansion

ThankUCash, a Nigerian multi-merchant rewards platform, has raised US$5.3 million in seed funding as it plans to expand into new markets and launch new products.

ThankUCash, co-founded in 2018 by Simeon Ononobi, Suraj Supekar, Madonna Ononobi, and Harshal Gandole, offers cashback on purchases and deals from thousands of merchants, assisting merchants in retaining customer loyalty, increasing revenues, and growing.

The startup has over 600,000 users and over 1,000 stores on its platform, with a total transaction volume of more than US$80 million.

Its US$5.3 million seed round was co-led by 500 Global and Unicorn Growth Capital, with participation from Expert Dojo, Predictive VC, SaaS Growth Ventures, Betatron, Accelerex Holding, former HSBC CEO Andrew Dell, Google director of strategy and operations Craig Fenton, and others.

ThankUCash already has operations in Lagos, Abuja, and Port Harcourt, and plans to use the funds to expand to other cities across the country, as well as Ghana and Kenya. It will also launch two new products: remittances and a “buy now, pay later” (BNPL) infrastructure.

The startup will provide the technological infrastructure that will connect merchants with credit and loan facilities, allowing customers to pay for goods and services directly through the ThankUCash super app, using credit facility loans.
“Because of advancements in technology, we now have our machines in stores.” As customers request loans, we generate a code for them, which they enter into the PoS machine, and the merchant is directly credited. The code can only be used in the store selected and for the loan amount requested, ensuring that the customer is buying directly from the merchants at the end of the day. We’re making this infrastructure available to everyone and intend to provide it to loan companies.” The startup’s CEO, Simeon Ononobi said.

ThankUCash’s progress since participating in 500 Global’s accelerator has impressed Amit Bhatti, principal at 500 Global, with the startup having implemented a rewards system that works for Nigerian consumers, regardless of cash or credit or online or offline payment.

“It’s a win-win situation for businesses and banks alike, as ThankUCash provides them with the tools and data they need to grow.” We’re excited to support the company’s continued evolution now that partnerships have expanded their reach to many more potential users and new markets across Africa,” he said.

ThankUCash’s interoperable loyalty rewards and merchant platform, according to Barbara Iyayi, managing founding partner at Unicorn Growth Capital, is “an integral part of the future of fintech.”

“As a category leader with a large installed base, ThankUCash is well-positioned to transform the financial infrastructure for merchants and consumers, opening up new opportunities for the digital economy,” she said.