AAA Investors rate FiveStars for $50m

Investors rate FiveStars for $50m

Fivestars, the US-based customer relationship management service backed by telecommunications and media company Rogers Communications, raised $50m in series C funding on Friday.

The round was led by investment firm HarbourVest Partners and featured Lightspeed Venture Partners, Menlo Ventures and DCM Ventures.

Founded in 2010, FiveStars has created a loyalty app that allows consumers to collect points from purchases which they can then exchange for goods. The company claims its tool was responsible for more than 35 million customer visits across 10,000 stores in the US and Canada last year.

The cash will go towards a recruitment drive across all divisions, focusing particularly on sales and engineering. FiveStars has secured $105m to date, according to its latest press release, though the company has only revealed details for $92m.

Rogers supported a $26m series B round in 2014 alongside Menlo, Lightspeed and DCM. Lightspeed and DCM had provided $13.9m in series A capital in 2012.

Fivestars secured $2m in 2011 from Mayfield Fund and angel investors Chamath Palihapitiya, Hadi and Ali Partovi. Accelerator Y Combinator also invested $150,000 that same year when FiveStars graduated from its program.

Victor Ho, co-founder and chief executive of FiveStars, said: “The in-store service experience has failed so many customers before. Now, major chains and retailers are replacing cashiers with kiosks and tablets to take orders and serve customers.

“Our vision is to make commerce as personalised offline as it is online and bring exceptional service experiences back in-store. We are just scratching the surface on what is possible and we are excited to work with our investors who share the same passion, dedication and vision as we do to make this happen.”

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