Karrot seeks £500k from the crowd

THE developer of a mobile loyalty app that helps consumers cut their mobile phone bills while shopping with retailers, is looking to raise £500,000 through a crowd funding website.

Karrot, which has been founded by tech entrepreneurs Adam Ward and Josh Graham, who previously worked at 2ergo, the AIM-listed mobile content group.

Karrot is seeking to raise £500,000 via Crowdcube and has an aspiration of becoming a leading mobile loyalty scheme. The investment will be used to grow the team, build the user base and attract new retail partners.

The app rewards consumers with money off their monthly or pre-pay phone bills as they shop and engage with partner retailers. It works in conjunction with all major network operators, including O2, Vodafone, Three and EE and works on both pre pay and pay monthly accounts.  It has already signed-up a number of high street chains including Caffé Nero, H Samuel and Blue Inc.

Once customers have registered their payment card with Karrot, transactions with participating retailers are logged automatically at the point of sale or at the online checkout. Customers can then redeem points within the app and the saving is automatically applied to their mobile account or can be gifted to friends or family.

At 2ergo Ward and Graham were involved in hugely successful mobile loyalty projects with Orange (Orange Wednesday) and O2 Telefonica. Karrot has been seed-funded by 2ergo founder Neale Graham and former Chairman Keith Seeley, both of whom are directors of the new business.

Ward said: “We’re passionate about mobile technology and consumer loyalty and are ready to disrupt the industry. We’re now looking to raise £500,000 to fund the growth of our business and drive user acquisition. We hope to provide 4-5 times return on investment within 3-5 years”.

Graham added: “Crowdcube is a hugely respected crowdfunding platform and we’re delighted that Crowdcube has as much confidence in the business as we do. We’re hugely excited about where this additional funding will take the business.”