Arcube, a Manchester, UK-based startup looking to transform the airline industry, announced it has raised a $1.5 million seed round co-led by Fuel Ventures and Oxford Capital Partners. And notable investors include the Chairman and former CEO of Pegasus Airlines and the founders of PointsYeah.com.
The company established its headquarters in the city’s innovation district Sister. And the company’s platform promises to unlock significant new revenue streams for airlines through smarter use of passenger data.
Launched by University of Manchester graduates Prithveesh Reddy and Harvey Lowe, Arcube has caught the attention of industry insiders by winning the Venture Further Awards in the Technology category. And their platform utilizes artificial intelligence to boost loyalty and ancillary revenue for airlines.
Arcube’s flagship product, the Passenger Intelligence Platform is the world’s first post-flight solution. And it uses advanced data analytics to track passenger behavior and suggest personalized upsells immediately after a flight. The technology was trialed by Etihad Airways, generating $1.6 million in extra revenue from just 1,300 passengers over a year and achieving a notable 10.3% increase in average order value.
Airlines have struggled to build loyalty among infrequent flyers. And many passengers hold dormant loyalty accounts with insufficient points to redeem meaningful rewards. Arcube’s solution enables passengers to convert unused miles into ancillaries like priority boarding, fast-track security, and lounge access. These ancillaries are reserved for a future booking to incentivize the passengers to return to the same airline.
Arcube’s journey started at the University of Manchester’s Masood Entrepreneurship Centre (MEC), which was established by Alliance Manchester Business School (AMBS) enterprise lecturers in 2000 and provides resources and support for budding entrepreneurs. The duo started by taking part in the Centre’s entrepreneurship courses and later secured early-stage funding through MEC’s Kickstarter scheme. Earlier this year, Arcube took first place in the prestigious Venture Further Awards, one of the UK’s leading university startup competitions.
The company recently secured the Turing Innovation Catalyst Manchester AI innovation grant. Having recently graduated, Reddy and Lowe are now focusing on scaling their operation. And they are in discussions with 14 airlines globally and aim to establish Arcube as a leader in the burgeoning travel ancillary data market.
KEY QUOTES:
“Airlines have vast amounts of passenger data—what people eat on board, how early they arrive at the airport, how long they spend in lounges—but much of it goes unused. Our platform bridges that gap by offering tailored, real-time options to passengers as soon as they get off the flight.”
“Our ambition is to create the world’s largest data set for travel ancillaries. Ancillaries already account for up to 20% of revenue for traditional airlines, and for low-cost carriers, it’s often more than 50%. We’re starting with airlines, but our vision extends to the entire travel ecosystem—car rentals, cruise lines, hotels.” With a combination of technical expertise, entrepreneurial grit, and early success, Arcube looks set to become a major player in travel tech. As the startup scales its platform and expands its client base, it’s poised to offer a smarter, data-driven approach to airline loyalty and revenue generation.
- Prithveesh Reddy
“The Masood Entrepreneurship Centre gave us a vital platform. Their mentorship and financial support have played a crucial role in our progress.”
Regarding convincing Etihad Airways to pilot its technology
“We didn’t have a track record, so we offered to build the software at our own risk, asking only for a share of the additional revenue we could generate. It was a bold approach, but after months of negotiations, Etihad agreed.”
• ⁃ Harvey Lowe
