Significant funding deal boosts discount app firm’s international expansion strategy
An Altrincham-based closed user group discount platform has received a “significant investment” to fund its expansion, particularly in the US market.
Digital Rewards Group (DRG) provides access to exclusive discounts and experiences through its Kids Pass platform, establishing itself as a market leader in discounted, family focused experiences and attractions across the UK.
It also owns and operates other dedicated digital platforms, including Global Hotel Pass and DaysOut.com.
It has received financial backing from private equity firm Maven Capital Partners in a package that includes funding from Maven’s new Management Buyout Fund II.
Led by group CEO, Andrew Kilmartin, and UK CEO, Dave Clayton, DRG has experienced significant growth in recent years, with impressive net revenue growth, creating valuable savings for key consumer groups and incremental revenue streams for its partner brands.
The investment was led by Ryan Bevington and Jeremy Thompson, partners in Maven’s Manchester office, with ThinCats providing senior debt funding for the transaction alongside the Maven investment.
Gautam Sahgal, former PerkBox CEO, and Andrew Gunson, have joined DRG’s board as non-executive chairman and chief financial officer, respectively.
Andrew and Gautam will supplement the existing senior team in the delivery of the next phase of growth.
Other senior hires facilitated by the transaction process include a new head of retention and new head of partnerships.
Andrew Kilmartin said: “We are excited to have brought Maven on board for the next stage of our growth journey.
“We worked closely with our financial advisers to choose an investor with a common set of values and experience of helping high growth digital businesses accelerate their growth plans, particularly with our expansion internationally.
“We have ambitious plans for this next phase and look forward to delivering our objectives alongside the Maven team.”
Ryan Bevington said: “Digital Rewards Group operates in a resilient market with a large addressable audience and clear international expansion potential.
“We’re looking forward to working in partnership with Andy, Dave and the wider team who have developed Digital Rewards Group to a market-leading position and laid excellent foundations for its future growth.”
Maven was advised by Grant Thornton (corporate finance & debt advisory), Gateley (legal), BDO (tax structuring), Prelude Consulting (management due diligence), Locktons (insurance due diligence).
The shareholders of DRG were advised by DC Advisory (corporate finance), Hill Dickinson (legal), RSM (financial due diligence), Graph Strategy (commercial due diligence), Equator (technology due diligence).
ThinCats was advised by Pinsent Masons (legal).
