Cashback service LetyShops has been given a one-time investment of $3 million from the German AB Capital Group. The investment will aid in increasing the holding’s share in one of Eastern Europe’s leading cashback service providers.
AB Capital Group owns a cluster of IT-companies centred around global affiliate network Admitad, who last year, generated over $5 billion in advertisers’ revenue.
LetyShops is one of the leading cashback providers in CIS and continues to show growth in Western Europe as well as other regions. The investment comes as an extra boost to enhance this advancement. This year alone, LetyShops revenue is expected to grow by 30% to $30 million.
LetyShops is currently available in seven languages, hosts a total of 2400 e-shops and 12 million users. According to SimilarWeb, LetyShops.com website saw four million visitors in May 2020. The top five countries by number of impressions were Russia, Ukraine, Spain, Poland and Belarus.
“Our strategy is to continue with the fast-paced growth in Spain, Germany, Poland, Latin America & India as well as launch in the new markets. Letyshops generates $10 million in gross merchandise volume monthly for its partners and expects this figure to grow dramatically after raising funding from Admitad. To achieve this goal, we will invest in marketing and development of new products so we can help our advertisers increase sales and acquire new users,” said Letyshops CBDO Sergey Korneyev.
“The first time we invested in LetyShops was in 2016, after the service’s explosive growth in both active users and sales. We see great potential in the cashback market in the new regions and are certain that LetyShops will fully discover it,” commented AB Capital Group founder Alexander Bachmann and CEO of Admitad.
LetyShops’ plan to draw funding does not stop at that. The service is expected to get another round of investment approximately H1 2021. That money will also serve to push forward and consolidate the company’s progress in the multiple digital markets.