Reffind finally makes its blockchain play, buys into global rewards business Loyyal
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Australian employee solutions startup Reffind is buying into US blockchain leader for the global loyalty market, Loyyal Corporation.
The $US2.3 million investment will give Reffind an equity stake in Loyyal of between 12.8 per cent and 14.8 per cent and board representation.
The deal also gives Reffind exclusive performance-based licensing rights to Loyyal’s blockchain-based loyalty and rewards platform for select countries in the Asia Pacific region.
San Francisco-based Loyyal is the first to leverage the advantages of blockchain for the global loyalty and rewards industry.
Blockchain uses computers with advanced encryption to keep track of transactions, giving confidence to both buyers and sellers. Transactions of bitcoin are tracked using blockchain.
Reffind, which has an app that manages employee referral programs for medium-to-large corporations, raised $8 million in its 2015 IPO on the ASX, issuing 40 million new shares at 20 cents each.
In early trade today, Reffind shares were up 18 per cent to $0.037.
But the shares reversed direction in later trade after diversified investment company Chapmans Limited announced it had become Reffind’s biggest shareholder with 9.33 per cent. At last report the shares were down 9 per cent to $0.03. Chapmans Limited shares fell 16.6 per cent to $0.010.
Reffind says Loyyal has rapidly delivered a proven product that has attracted Fortune 500 leaders including Deloitte, Dubai Points, and several others that cannot currently be named for confidentiality reasons but include a large global airline and a large US financial services company.
“We are excited to have secured a substantial holding in the world’s leading blockchain based loyalty and rewards platform,” says Anthony Dunlop, a board member at Reffind.
“We see this as a crucial milestone in our strategic growth plan, which is targeted towards being quickly recognised as the global leader in enterprise rewards, recognition, and loyalty solutions.
“We have a specific focus on scaleable growth and market penetration in the corporate and government agency markets across the fast-growing Asia Pacific region.
“The significant upside we expect the blockchain technology to provide sees this investment as an ideal means to drive further growth in line with our corporate strategy.”
Earlier this month the company appointed blockchain industry leader Tim Lea as CEO.
“I see the blockchain as a major paradigm shift, alongside the PC, the internet and social media,” says Lea. “It will undoubtedly transform the way we conduct business, especially within the financial services and large enterprise space.”