Lolli, a cryptocurrency company that offers free Bitcoin rewards when you shop, has raised $8 million in a Series B funding round.
Bitkraft Ventures led the round, with participation from Sfermion, Ulta Beauty’s Prisma Ventures, Hypersphere Ventures and ZebPay’s Rahul Pagidipati, Lolli said Thursday. Existing investors including Alexis Ohanian’s Seven Seven Six, Founders Fund’s Pathfinder Ventures, Bain Capital Ventures, Serena Williams’ Serena Ventures and Logan Paul also supported the round.
This round of funding comes two and a half years after Lolli’s Series A round, which was smaller than that round, which was worth $10 million. Alex Adelman, Lolli’s founder and CEO, said the company has historically been “very intentional” about raising only the amount needed to reach its next stage of growth. “With this round, we have secured the right amount of money we need to win without diluting our existing investors and team,” Adelman said.
Adelman added that Lolli began its fundraising process in early 2023, juxtaposed with “significant M&A interest” throughout the year, while the company decided on its funding path to remain independent and closed the round in November. He declined to comment on Lolli’s valuation for the Series B, but said it was all equity-financed.
As part of the deal, Carlos Pereira, a partner at Bitkraft Ventures, has joined Lolli’s board of directors, Adelman said. Adelman added that the Bitkraft team’s expertise in gaming and immersive technology will help Lolli bring Bitcoin to more people through a “gamified earning experience.”
Raleigh’s growth plans
Founded in 2018, Lolli offers shoppers Bitcoin or cashback rewards on daily purchases. The company said its users have earned more than $10 million in Bitcoin rewards to date. Adelman declined to comment on cashback reward amounts to date, but said Lolli’s user base continues to grow by more than 35% year-over-year as of October. “We also saw a record-breaking holiday season with increased Lolli spending exceeding the national average,” he said.
To attract more users to cryptocurrency, Lolli now plans to partner with businesses, similar to how it has partnered with merchants and other companies for several years. “We will work closely with exchanges, neobanks, banks, payments companies and browsers to increase sales, profits and engagement with Lolli’s patented rewards technology,” said Adelman.
International expansion is also on Lolli’s roadmap from at least 2021. Adelman said the company would explore that market next year “if the market is suitable for global Bitcoin rewards adoption.”
lolly card boost
Last year, Lolli also launched an in-store rewards program called Card Boosts. Adelman said Lolli users currently have 25,000 profitable stores, but “we expect to reach more than 100,000 by 2025.”
Lolli currently has 20 employees, and Adelman plans to strategically expand the team across multiple functions in the new year. Lolli is still focused on Bitcoin rewards, but is willing to explore other cryptocurrencies if user demand is high, Adelman said.
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