utu announces $33 million Series B funding round and acquires SC Ventures incubated FinTech CardsPal
Utu, a technology company focusing on the tax free shopping space, has raised a $33 million Series B from investors including SC Ventures. It has also bought CardsPal, a Singapore-based FinTech that offers deals and promotions nearby to users.
It says that the acquisition will allow it to accelerate growth by leveraging CardsPal’s mobile first technology and incorporating its talent into the wider organisation.
Pivotal to utu’s decision to acquire CardsPal is SC Ventures’ support incubating the startup to become a full-fledged tech platform that utu can leverage to bolster its tax free shopping offerings.
Asad Jumabhoy, Co-founder and CEO at utu, comments: "The cross-border travel market is ripe for a technology driven transformation, with tax-free shopping presenting vast untapped potential.”
“By enhancing the value of VAT and GST refunds for travellers, we've reimagined the cross-border retail experience and devised a technology-based business model unlocking previously inaccessible value.”
“This strategy benefits all stakeholders, brands, hotels, airlines, and VAT refund operators, while also enabling governments to compliantly recycle VAT refunds within their borders."
By linking payments, rewards and shopping, utu aims to introduce new value for tourist shoppers, retailers, VAT refund operators and the tax free shopping value chain.
It claims that travellers using its Tax Free Card, can gain up to 40% more value by opting for frequent flyer miles or hotel points over cash refunds. utu is also able to issue immediate store voucher equivalent of up to 120% of the VAT or GST paid during overseas shopping.
utu currently partners with ten airlines including Air France-KLM, Emirates, Etihad, Qatar Airways and Singapore Airlines. It also partners with European hospitality brand Accor.
Gautam Jain, Member, at SC Ventures, says: "CardsPal is a great example of why we at SC Ventures believe in the power of innovation and support our employees to have transformational impact.”
“Through SC Ventures’ Intrapreneurship Programme, CardsPal grew to become a business with award nominated UX. We look forward to utu’s continued success scaling its products across the globe using CardsPal’s technology.”
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