Sweet Tooth is all about earning and enjoying rewards, and after winning $2.25 million in seed financing recently, the Waterloo-based loyalty program provider intends to expand its e-commerce capabilities.
Based in Waterloo, Sweet Tooth allows its customers to create white-labelled programs that merchants can use to retain repeat customers by giving them points towards incentives based on their purchases. On Monday, the company said OMERS Ventures and MaRS Investment Accelerator Fund were the biggest contributors to the seed funding, along with some other undisclosed investors. Sweet Tooth was founded three years ago and works with more than 1,500 merchants so far.
In an interview with BetaKit, Sweet Tooth founder CEO and founder Jay El-Kaake said the money would allow the firm to move from fixed licensing per month to a revenue model based on number of points transferred per month. It will also pave the way for additional e-commerce integrations beyond Magento, including PrestaShop next month.
“As a merchant is using a rewards program more, we’ll charge them more, and for the new guys just getting started, they won’t pay anything unless they see a return,” El-Kaake told BetaKit.
Other portions of the seed funding will go towards new hires.