Home > Latest News > Kogan Offering Fractional Shares To Customers

Kogan Offering Fractional Shares To Customers

Online retailer Kogan has moved to offer fractional shares to shoppers as a loyalty rewards inducement and as a means to get people investing in shares, also jumping on the idea of shares for customers is Big W owner Woolworths.

Billionaire Ruslan Kogan will give back between 0.75 per cent and 3 per cent of a transaction value in the form of shares in his eponymous company when consumers purchase goods via the e-commerce platform using the app.

Australian consumers transacting with global companies such as eBay, Lenovo and Microsoft will instead earn fractional shares in ASX-listed exchange traded fund FANG, run by local fund manager BetaShares, giving them exposure to US big tech stocks according to the Australian Financial Review.

Woolworths, Kogan and Marley Spoon are among ASX-listed retailers issuing shares as part of the micro-investing scheme that is designed to encourage the next generation of Australian shareholders.

Fintech start-up Upstreet now has an app that allows shoppers to receive up to 8 per cent of their transaction value back in the form of fractional shares in the company they purchased from.

Meal-kit provider Marley Spoon has seen an uptick in sales from its trial with fintech Upstreet.

For every transaction, an Upstreet app user makes in meal kits retailer Marley Spoon, for example, they will earn 2 per cent of the value in shares in the company as well as $45 worth of fractional equities as a sign-up bonus.

Upstreet founder and chief executive Christian Eckelmann, a former McKinsey & Co consultant, told the AFR the app “demystifies the stock market” and introduces spenders to the concept of wealth creation.

“We have a dual mission,” Mr Eckelmann said. “First, to offer companies a more meaningful and effective way to reward customers. Our share rewards program strengthens the bond between a company and its customers, leading to long-term customer loyalty.
“Second, we want every person’s dollar to work harder for them and get them a step closer to the lives they want to live.”

“Upstreet is such a simple yet exciting way of creating long-term customer relationships by turning our customers into part-owners of the company,” said Marley Spoon chief executive Rolf Weber.

The fintech has raised $1.7 million from investors, including Antler, Spring Capital, and Black Nova Group, to bankroll its public launch.

It uses the “investing-as-a-service” platform provided by Cache Investments and is regulated as a managed investment scheme, with Bendigo & Adelaide Bank appointed custodian.



You may also like
Bunnings Is Australia’s Most Trusted Brand, Woolworths Drops After Woke Campaign
Serious Questions Raised Over Kogan Buying Practises As Revenues Fall
EXCLUSIVE: CE Retailers Looking At Ways To Generate Trailing Revenue From The TV’s They Sell
BREAKING NEWS:Big W Profits Fall 60% Revenues Slumps Woolies Boss Quits
EXCLUSIVE Crest Co Director Remanded On Rape Of 12yr Old Charges