Cashrewards IPO Tipped After Sales Surge
Online and in-store retail cash-back service, Cashrewards, is reportedly pushing an initial public offering on the ASX this year, following a sales surge from new members amid the coronavirus pandemic.
According to AFR, the company is tipped to appoint investment banks and layers this week, with the intention of floating before year end.
It follows the appointment of former Myer and Woolworths loyalty division executive, Andrew Clarke.
Cash rewards customers have reportedly spiked 37% year-on-year to May 31, notching over 800,000.
Local retail partners have climbed to over 1400, whilst revenue jumped 41% – down from 54% growth pre-coronavirus.
Cashrewards is known for being one of the pioneers of the cash-back movement in Australia, with demand tipped to further spike from budget-conscious consumers after the coronavirus pandemic.
Participating local retailers include the likes of Catch Group, Amazon Australia, Lenovo and more across selected categories.
Competition has been heightened by the entry of Singapore-based Shopback, which reportedly raised over US$75 million early this year.
Under the model, consumers receive a portion of their purchase ‘back’, as retailers pay a percentage of commission to cash-back promoters in exchange for the referral.
The news comes as more local retailers employ cash-back incentives to lure customer sales amid lockdown restrictions, whilst Woolworths and Coles temporarily suspended their cash-back offer at the start of COVID-19.
Cashrewards has also inked a strategic partnership with ASX-listed online lender, MoneyMe, permitting its MasterCard customers to receive cashback on several in-store or online purchases across its retail network.