Leal, a retail tech company based in Bogota, Colombia, has successfully raised $5 million in funding, which CEO Camilo Martinez has described as a “pre-Series B” round. The investment was co-led by LEAP Global Partners and Rakuten Capital, with additional participation from Morro Ventures and Salkantay Ventures. This latest funding round comes on the heels of a previous $10 million Series A round, bringing the total venture-backed capital secured by Leal to $20.5 million.
Key Takeaway
Leal, a Colombian retail tech company, secures $5 million in funding to enhance its AI-driven customer engagement platform for merchants across Latin America, aiming to further expand its market presence and strengthen its technological capabilities.
Expanding Customer Engagement in Latin America
Leal specializes in providing customer engagement solutions for business-to-consumer brands, e-commerce platforms, and financial institutions across Latin America. The company’s primary focus is to empower merchants to build a comprehensive customer database, enabling them to offer cashback and rewards programs to loyal shoppers on their everyday purchases.
One of Leal’s key strengths lies in its integrations with 160 different point-of-sale systems, including both local and international platforms. This allows merchants to track customer behavior and purchasing patterns, even for those who traditionally use cash as their primary payment method, which can be challenging to monitor. Additionally, Leal offers campaign management tools for targeted communications, providing merchants with valuable insights into their customer base.
Adapting to Challenges and Innovating
Despite facing significant setbacks during the global pandemic, which led to a substantial loss of merchants, Leal managed to revitalize its business. The company introduced a new feature in 2021, allowing grocery shoppers to earn Leal Coins by scanning paper receipts, which could then be redeemed for various goods and services. This initiative marked the beginning of Leal’s expansion of its rewards program across Mexico, Colombia, and Central America.
Currently, Leal collaborates with over 1,000 brands spanning 15 different industries across eight countries. The company has experienced remarkable user growth, with its user base surpassing 6 million, a significant increase from 1.5 million in 2020, and 3.5 million active users joining in the last 12 months.
Future Plans and Technological Advancements
With the latest funding, Leal aims to achieve $10 million in annual recurring revenue and further consolidate its presence in Mexico. The company plans to prioritize omnichannel communications, enhance data collection and interactions, and automate benefits to optimize conversions. Moreover, Leal intends to focus on advancing its artificial intelligence models to deliver personalized app rewards and benefits, leveraging generative AI for improved chatbot interactions, and strengthening communication channels such as WhatsApp and Facebook Messenger.
By harnessing AI and GenAI, Leal seeks to enhance predictive capabilities, drive experimentation, and streamline content creation to offer a more personalized and automated platform, reducing the need for extensive human intervention.
Leal’s commitment to leveraging cutting-edge technology and enhancing customer engagement underscores its dedication to empowering merchants and fostering a more personalized and seamless shopping experience for consumers across Latin America.
