Huge tech deal makes University of Bath graduate a millionaire
Lux Rewards, a start-up founded in Bath, has been acquired in an eight-figure deal that will make its founder, James Courtney a millionaire aged 30.
The loyalty reward tech company, which nearly went under twice, now serves over 105 million cardholders across the globe.
It has been acquired by global software company Enigmatic Smile.
Founded in 2015 by Bristol-born James Courtney while studying at the University of Bath, aged just 21, Lux Rewards started as a dining rewards app, connecting customers with high-end restaurants.
Despite early backing from the Just Eat Accelerator and local angel investors, the start-up struggled in its early years. At one point in 2019, the business was just two weeks from shutting down entirely.
“I had put everything into Lux Rewards,” said Courtney. “In those early days, I was literally walking into restaurants, trying to convince them to join the platform. I even worked with The Clifton Sausage to hand out free samples on the streets of Bath just to get people to download the app.”
Despite relentless efforts, growth remained elusive. One particularly painful moment came when Courtney spent £1,000 to put on an exclusive event at a wine bar, offering free wine and tapas in a bid to win over a major Bristol accounting firm.
“Only one person turned up,” he recalled. “It was the most embarrassing day of my life.”
By early 2020, Courtney had resigned himself to the business failing. A 2020 Crowdcube raise provided crucial funding, but COVID-19 hit just as the round closed. With restaurants closed and the business burning over £25,000 per month, Courtney, with his team on furlough, moved back home, assuming it was the end.
It was during this period that Lux Rewards, which was co-founded with Tom Munday and Ash Dey, moved away from direct consumer downloads to partnerships with businesses. This shift, combined with a successful Crowdcube raise, gave the business the traction it needed.
The turning point came in 2021 when the company signed a major deal with Barclaycard, expanding from 1,000 users to 400,000 overnight. Deals with British Airways and Mastercard followed.
Lux Rewards was supported by SETsquared Bath and pitched at several SETsquared Investment Showcases. Prior to this founder Courtney was a two-time winner of the University of Bath’s Business Plan Competition and was an Entrepreneurship Scholarship Awardee.
