SINGAPORE state investment firm Temasek has invested in cashback startup ShopBack, alongside some existing investors who did follow-on investments in the Singapore-based firm. The total deal value amounts to about US$30 million, sources told The Business Times.
ShopBack did not respond to queries from BT, but sent out a press statement on Thursday evening confirming Temasek's investment. The startup said Temasek led its extended US$75 million round, with participation from existing investors including Rakuten, EDBI, EV Growth, Cornerstone Ventures and 33 Capital.
ShopBack announced in April last year that it raised US$45 million in an equity funding round, co-led by new investors Rakuten Capital and EV Growth, with participation from EDBI, the investment arm of Singapore's Economic Development Board.
The latest capital injection brings ShopBack's total funding since its founding in 2014 to US$113 million. The company is also backed by SoftBank Ventures Asia and counts Singapore-based Qualgro and Quest Ventures among its earlier investors.
Temasek's investment was done through an indirectly owned vehicle called Dahlia Investments, according to regulatory filings seen by BT. Dahlia owns 11.6 per cent of ShopBack, assuming that one preference share converts into one ordinary share, which is the industry standard.
A senior executive at Temasek told BT in October last year that the state investment firm has its eye on what it calls "aspiring unicorns" in South-east Asia - companies valued between US$100 million and US$1 billion. Rohit Sipahimalani, joint head of the portfolio strategy and risk group at Temasek, said he expects the group to announce a couple of deals in the pipeline in the next few months.
The additional funding will be used by ShopBack to improve its technology infrastructure, expand data capabilities and drive growth in its existing markets.
The startup currently serves more than 19 million users across seven Asia-Pacific markets, offering cashback across a wide range of categories including general merchandise, travel bookings, fashion and groceries.
In 2019, ShopBack saw a 250 per cent year-on-year growth in sales and orders, posted over 16 million monthly orders and recorded more than US$2 billion in sales by over 2,500 merchants.
The company has three research and development hubs in Singapore, Taiwan and Vietnam. They house a team of over 150 engineering, data and product management staff.
ShopBack expanded to Australia in end-2018, offering users cashback on purchases from retailers such as Woolworths, Cotton On and eBay Australia. Today, it serves over a million users in the market.
"Product innovation and customer focus are at the core of ShopBack, and we are proud to have transformed the rewards industry by providing users with a simple and seamless way to save while shopping," said Henry Chan, CEO and co-founder of ShopBack. "With the new funding, we will develop new features to help our users save even more money and time by making smarter buying decisions."