Leal, a retail technology company headquartered in Bogota, Colombia, has secured $5 million in funding in what CEO Camilo Martinez refers to as a “pre-Series B” round.
Funding Round Details
LEAP Global Partners and Rakuten Capital led the funding round, with participation from Morro Ventures and Salkantay Ventures. This investment comes approximately two years after Leal raised $10 million in Series A funding, co-led by Rakuten and IDC Ventures. In total, the company has raised $20.5 million in venture capital.
Customer Engagement Platform
Leal specializes in providing customer engagement solutions for business-to-consumer brands, e-commerce platforms, and financial institutions across Latin America. Its platform allows merchants to build a customer database and offer cashback and rewards programs to loyal shoppers on their everyday purchases.
Key Features and Integrations
The company has integrated with 160 different point-of-sale systems, enabling merchants to track customer behavior and purchasing patterns, even for customers who primarily use cash payments. Additionally, merchants have access to campaign management tools for targeted communications.
Overcoming Challenges
Despite facing significant setbacks during the global pandemic, which resulted in the loss of 85% of its merchants, Leal managed to bounce back. In 2021, it introduced a new feature that allows grocery shoppers to earn Leal Coins by scanning paper receipts, which can be redeemed for various goods and services. The company expanded its rewards program across Mexico, Colombia, and Central America.
Growth and Expansion Plans
Currently, Leal serves over 1,000 brands across 15 industries and operates in eight countries. With more than 6 million users, the company has experienced significant growth, particularly in the past year.
Future Initiatives
With the latest funding round, Leal aims to achieve $10 million in annual recurring revenue. The company plans to focus on expanding its presence in Mexico, enhancing omnichannel communications, and developing tools for smarter data collection and interactions. Additionally, Leal will invest in technology development to improve its artificial intelligence models for personalized app rewards and benefits, leveraging generative AI for enhanced chatbot interactions between brands and consumers.
Conclusion
By strengthening communication channels such as WhatsApp and Facebook Messenger and harnessing the power of AI and generative AI, Leal aims to deliver more personalized and automated experiences for both merchants and consumers. These initiatives align with the company’s goal of maximizing conversions and providing greater value to its growing user base across Latin America.
