Deutsche Telekom leads $9M SCVNGR investment for LevelUp payment app
SCVNGR, the startup behind the fast-growing LevelUp mobile payment application, has raised an additional $9 million in funding led by Deutsche Telekom's T-Venture arm and other individual investors. The funding is the second tranche of a two-part round, following two months after a $12 million investment from existing investors Highland Capital Partners, Google (NASDAQ:GOOG) Ventures and Balderton Capital as well as new investors Continental Investors and Transmedia Capital. SCVNGR has now raised $41 million to date.
Launched in mid-2011, LevelUp enables users to link their credit or debit card to their smartphone, generating a unique QR code they can scan at the point of sale to complete transactions. LevelUp business partners also can integrate incentives and loyalty programs into the app. SCVNGR does not charge a payment processing fee on LevelUp transactions; the firm instead generates revenue by claiming a 35 percent share of sales derived from partners' daily deals campaigns and related mobile promotions.
LevelUp is now available at more than 3,000 merchant locations in eight U.S cities, including casual dining chains Johnny Rockets and Ben & Jerry's. According to SCVNGR, LevelUp's active customer base has doubled to more than 200,000 during the last three months, with average users saving between $30 and $40 per month. SCVNGR founder and CEO Seth Priebatsch recently told VentureBeat that about 65 percent of LevelUp users are active every month--50 percent are active every two weeks, and the average customer uses the app two to three times a week. The total number of LevelUp transactions processed is growing by 15 percent every seven days; the average transaction is just under $10.
SCVNGR will leverage the new funding fuel both product development and the expansion of its mobile payment network.
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