Hong Kong-based digital coupon platform Mezzofy announced on Wednesday the completion of its Pre-Series A funding round, raising US$2 million (HK$15.62 million) to support global expansion and product advancements geared towards a Web3 future.
Isola Capital’s IPVF VII led the funding round with participation from Ooosh Tech Lab and co-investment from Hong Kong government-backed Innovation and Technology Venture Fund (ITVF).
With this funding, Mezzofy aims to expand its market presence and reach, including entering the United States and Europe, the largest digital coupon markets. The company also plans to enhance its product capabilities using big data, AI, and blockchain technologies.
Mezzofy’s Co-founder and CEO, Dicky Ying, highlighted the company’s unique approach to making digital coupons transferable, addressing a common consumer pain point and distinguishing Mezzofy in the competitive market.
“The growing popularity of digital payment and ecommerce among Hong Kong consumers aids the digital coupon market to bloom, “However, some consumers face a pain point when using digital coupons is that once they receive it via an app, it has to be stored in their own device, they cannot pass it to their friends and families, unlike a physical coupon, hindering them to actually use it,”
said Dicky.
The platform currently manages 400 million digital coupons across 15 markets, including Hong Kong, Macau, Mainland China, and others, with a total value exceeding US$5.1 billion (HK$39.83 billion). Mezzofy’s operations span offices in India, Singapore, Malaysia, and its Hong Kong headquarters, and its team consists of 40 members.
Anthony Chan, CEO of lead investor Isola Capital, expressed confidence in Mezzofy’s potential for continued innovation and growth, particularly given its success in scaling operations across Asia over the past seven years.
“We have confidence in Mezzofy and its ability to continue to innovate and develop advanced technologies and applications, and we are excited to be an important partner in Mezzofy’s exciting journey,”
said Anthony.
According to Transparency Market Research, the global digital coupon market is expected to grow at a compound annual growth rate (CAGR) of 18.6 percent from 2021 to 2031, with Asia Pacific being the second-largest market. Nearly 100 brands in the region, including Maxim’s Group, Starbucks Hong Kong, and Hyatt Hotels Corporation, have utilized Mezzofy’s platform for their digital coupon campaigns.
According to Mezzofy, its coupon-as-a-service (CaaS) model allows corporations to use the product without upfront costs and seamlessly integrate with existing systems via Mezzofy API.
This approach significantly reduces the cost of running coupon campaigns, provides insights into customer behaviour, and reduces the risk of fraudulent digital coupons.
Featured image credit: Edited from Freepik
