In a significant development for the retail technology sector, Leal, a Bogota, Colombia-based company specializing in customer engagement solutions, has secured $5 million in funding. The investment is part of a "pre-Series B" round led by LEAP Global Partners and Rakuten Capital, with participation from Morro Ventures and Salkantay Ventures.
A New Chapter for Leal
This latest funding round marks the second significant investment in Leal within two years. In 2021, the company raised $10 million in Series A capital, co-led by Rakuten and IDC Ventures. With a total of $20.5 million in venture-backed capital secured, Leal is poised to further solidify its position as a leading provider of customer engagement solutions for business-to-consumer (B2C) brands, e-commerce sites, and financial institutions across Latin America.
Understanding Leal’s Customer Engagement Solutions
Leal enables merchants to create a customer database, which is then used to offer cashback and rewards products to loyal shoppers on everyday purchases. To achieve this, the company has developed integrations with 160 different point-of-sale (POS) systems. While many of these POS systems are local, Leal has also integrated with prominent players in the United States and Europe, despite their limited presence in Latin America due to cost constraints.
The Challenge of Tracking Cash-Based Transactions
One significant advantage offered by Leal’s solutions is the ability for merchants to track customer behavior and purchasing patterns for customers who traditionally pay with cash. This payment method can be notoriously difficult to track, making it challenging for businesses to understand their customers’ preferences and tailor their marketing efforts accordingly.
Leal’s Tools and Features
To help merchants better engage with their customers, Leal provides access to campaign management tools for targeted communications. These tools enable businesses to create personalized messages that resonate with their target audience, increasing the effectiveness of their marketing campaigns.
The Road to Recovery
Leal’s journey has not been without its challenges. In 2020, the global pandemic severely impacted the company’s growth, resulting in a significant loss of clients and revenue. Martinez, Leal’s CEO, noted that "We lost 85% of our merchants… We were heavily reliant on brick-and-mortar retailers. Lockdowns were some of the strongest ones after Asia, for example, over six months. We almost had to rebuild our business from 2021 onwards because we had no clients."
Bouncing Back with Innovation
Undeterred by these setbacks, Leal has continued to innovate and adapt to changing market conditions. In recent years, the company has introduced new features and tools designed to enhance customer engagement and retention.
A New Era of Growth
With this latest investment, Leal is poised to embark on a new era of growth and expansion. The $5 million funding will be used to further develop the company’s solutions and strengthen its presence in the Latin American market.
What’s Next for Leal?
As Leal continues to grow and innovate, there are several exciting developments on the horizon. Some of these include:
- Expansion into new markets: With a strong foundation established in Latin America, Leal is likely to expand its presence into other regions, including North America and Europe.
- Development of new solutions: Building on its existing suite of customer engagement tools, Leal may develop new solutions that address emerging trends and challenges in the retail sector.
- Strategic partnerships: The company may form strategic partnerships with other industry players to enhance its offerings and reach a wider audience.
Conclusion
Leal’s latest funding round marks an important milestone for the company, solidifying its position as a leading provider of customer engagement solutions. As Leal continues to innovate and expand its presence in Latin America, it is likely to remain at the forefront of the retail technology sector.