UTU secures $33M in funding to enhance tax-free shopping benefits for travelers.
Furthermore, Utu revealed the acquisition of Singapore-based fintech firm, CardsPal, known for providing users with location-based deals and offers.
Funding Round Info:
Travel tech firm Utu, known for enhancing the value of tax-free shopping for travelers, has raised $33 million in a Series B funding round. Notable investors in this round include SC Ventures. Furthermore, Utu revealed the acquisition of Singapore-based fintech firm, CardsPal, known for providing users with location-based deals and offers. During the travel industry's pause due to the pandemic, Utu focused on forming alliances with travel, hotel, and retail brands. Despite the resurgence of travel, Utu points out that only around 1% of venture funding over the last 15 years has targeted travel, particularly short-term rental hospitality. Utu aims to invigorate the tax-free shopping sector, a market that enables tourists to recoup VAT on their purchases. The acquisition of CardsPal will enable Utu to gain a digital marketplace, a promotion engine, and a self-service merchant registration portal. This move is also expected to speed up Utu's expansion in markets like France, Italy, and another 50 countries offering VAT and GST refunds. The funds raised will be allocated to expand Utu's product distribution across all countries with a VAT refund service, invest in technology and new products, and strengthen its management to drive its growth strategy.
About UTU Singapore:
Utu's primary product is the Tax Free Card, which offers two primary benefits. Firstly, tax-free shoppers can choose to receive frequent flyer miles or hotel points in place of VAT refunds. Alternatively, they can opt for an instant store voucher equal to 120% of the VAT or GST paid during overseas shopping. Utu claims that their model allows partner organizations such as retailers, airlines, and hotels to not only boost customer loyalty but also increase their revenue from tourist shopping by up to 40%. Utu's network comprises 10 major global airlines including Air France-KLM, Emirates, Qatar Airways, and Singapore Airlines, and prominent European hospitality brand, Accor. To manage payments, Utu collaborates with fintech partners like Nium and utilizes its proprietary technology. The company also plans to announce additional partnerships later this year. Utu's system enables customers to pay VAT upfront and reclaim it through operators such as Planet or Global Blue. The key differentiator with Utu is that it allows a more considerable amount of VAT to be reclaimed. Utu's co-founder, Asad Jumabhoy, leverages his extensive experience in the duty-free and tax-free shopping industries to innovate the firm's offerings. He believes in layering new products on the existing tax-free shopping infrastructure to unlock value for all stakeholders. Jumabhoy identifies two primary issues with the current system: the complexity of obtaining VAT refunds and the partial VAT refund received by tourists. Utu's solution addresses the latter by offering tourists greater value in shopping, such as getting over 90% of their refund value in frequent flyer miles.
About CardsPal:
CardsPal is a digital lifestyle application dedicated to providing users with exclusive deals, access to recent events, and tips to enhance their rewards. The platform offers various tools and features including a Cashback Calculator and a card comparison function, aimed at helping users maximize their benefits and lifestyle experiences. Additionally, CardsPal curates exclusive deals and ticketing for live events and entertainment, facilitating its users to enjoy life to its fullest. The company's goal is to generate substantial savings for its users and aims to become a one-stop daily lifestyle app. This mission involves guiding users to make optimal payment decisions at the right place and the right time, enabling them to live the life they desire.
About SC Ventures:
SC Ventures is a business division within Standard Chartered Bank that serves as a platform and catalyst for the bank to promote innovation, invest in disruptive financial technology, and explore new business models. Over its five-year journey, SC Ventures has launched over 30 new ventures, established a FinTech Bridge community of over 3000, and has invested in 22 portfolio companies. SC Ventures has identified several themes around which its investments and initiatives are centered. These include the Online Economy & Lifestyle, focusing on how the rise and integration of the online economy is driving economic growth and how finance needs to support the digital lifestyles of this new economy. In addition, they have targeted SMEs & World Trade, understanding that world trade is a vital engine for global welfare and GDP growth. They aim to resolve the challenges SMEs face regarding inclusion in the global economy and access to the financial system. Another area of focus is Digital Assets, recognizing that while digital assets are here to stay, they require a sustainable and safe infrastructure that banks are well positioned to provide. Finally, they are concentrating on Sustainability & Inclusion, acknowledging the opportunity for corporates and banks to fully incorporate sustainability and financial inclusion into their business models. Through its various ventures and minority investments, SC Ventures seeks to contribute to these areas and reimagine how banks will serve society.