Lithuania’s Boomio scores €550k to transform customer loyalty market
Vilnius-based Boomio has just bagged €550k to level up the customer loyalty market , bringing it into the digital age in a cost-effective and time-efficient way. The startup is now planning wider European growth.
Taking care of customers is fundamental for most businesses – especially in the ecommerce and retail space. However, in the digital era, it’s a market that is fragmented and costly. It’s reported that since the pandemic, and the associated boom of social media advertising and digital approaches to customer acquisition, the costs associated has doubled and the efficiency has declined – as new privacy rules and regulations have come into place.
Despite this, most firms do very little to retain clients, as existing solutions are difficult to administer, time-consuming, and expensive to start and maintain.
Aiming to address this market gap is Boomio – an all-digital customer loyalty platform.
Today, the Vilnius-based startup has announced the raise of €550K in a follow-up investment round.
The current round of investment was led by Lighthouse Ventures and a syndicate of 4 European angel investors. Last year, Boomio received an investment of €215K from 2 LitBAN investors and 2 VC funds – 70V and Startup Wise Guys.
Transforming customer loyalty
The Vilnius-based startup wants to make digital customer loyalty tools available to small and medium businesses that cannot afford to have such tools developed in-house. Boomio’s online platform and mobile app allow businesses to create and manage their own rewards & loyalty system for a small subscription fee.
Saving money has become a top concern for many customers, as we enter into a cost-of-living crisis across Europe and economic recession and inflation become familiar terms once again. While participating in loyalty programs is one method to do this, keeping up with multiple plastic cards and paper coupons is becoming challenging, while developing in-house apps is too expensive for most businesses.
Boomio centralizes all available saving methods (coupons, cards, discounts, etc.) into one easy-to-use web platform and app. Setting up a loyalty system will now take not months or weeks but just a few hours.
Jonas Davalga, CEO and co-founder of Boomio, explained: “We will help small and medium businesses to discover their loyal customers who generate ~80% of revenue and provide simple and effective tools to help them grow up to 2.5 times faster than their competitors.”
The new capital injection will be used by the growing team, which grew its revenue 3x over the past year in the Baltics, to improve their product and expand to the German market.
Robert Reich, Investment Manager at Lighthouse Ventures: “We see huge potential in what the Boomio team is working on and the ability to bring added value to the number of small and medium-sized businesses.”