Benjamin Capital Partners announced the closing of a $5.5 million seed round from Play Ventures and F4 Fund. Other prominent investors in the round include Anton Gauffin, an inventor, investor, and serial entrepreneur; payment veteran Shane Happach; and Reworks founder Ilkka Teppo.
This funding round will fuel growth for the Benjamin cash rewards app, which has generated robust consumer demand and revenue growth since its launch in October 2023.
Since exiting beta in October, the Benjamin app has over 300,000 installs and 195,000 monthly active users (MAUs). Many users already earn over $100 per month; some earn over $1,000 per month. Plus, more than 50% of installs are staying as MAUs. Revenue growth has also been robust, growing north of 40% month over month since October.
This funding round will go towards aggressive user acquisition and funding product development.
The funding round coincides with the imminent release of an enhanced version of the app and the hiring of Benjamin’s first CEO. Lon Otremba, a media, marketing, and technology veteran, has joined the company. Most recently, Otremba was the CEO of the pioneering native advertising tech platform Bidtellect (acquired last year by Simpli.fi). Otremba also ran AOL’s Interactive Marketing Group; served as the founding President of Mail.com (exit via IPO and eventual sale to AT&T); and a founding executive at CNET Networks (exit via IPO).
The Benjamin app enables consumers to generate cash rewards (called Benjamin Money Moments) on a broad range of everyday activities including purchases, mobile gaming, and viewing ads. This versatility enables Benjamin to up the ante to compete against other established players in the cashback space.
For example, Bilt Rewards – which recently raised $200 million with a multi-billion dollar valuation – is focused on cash rewards for paying rent or one’s mortgage. And another company called Upside, which previously generated a $165 million Series D round, is focused in generating cash back on consumer gas purchases for their cars.
KEY QUOTES:
“We have a simple goal. To allow consumers to generate at least a Benjamin a month – $100 – using the Benjamin app.”
– Lon Otrema
“Our vision is for Benjamin to be the facilitator of a comprehensive cash rewards lifestyle across the full range of commercial brands and entities with which consumers interact on a daily basis. The Benjamin wallet will be the initial catalyst for an entire ecosystem centered on ‘Benjamin Money Moments’, or ‘MoMo’s’ for short, for consumers as they go throughout the course of their days. They can use the app in the morning at their local Starbucks and get 2% cash back. And then when they are commuting on the train to their jobs, playing their favorite mobile games, they can earn money there too. This MoMo-based ecosystem represents a whole new paradigm.”
– Erno Tauriainen, Founder of Benjamin Capital Partners, who is a 15-year veteran of the cash rewards space, with two previous exits
“Play Ventures is very excited to lead the seed round of Benjamin as they continue to build category-defining consumer reward products. With nearly half of the US population playing mobile games, and consumer credit card rewards reaching new heights every year, we believe that the intersection of consumer rewards and mobile games is a major emerging opportunity. We are excited to put our expertise in scaling gaming companies to work with the Benjamin team to help them seize the opportunity to redefine lifestyle products in the category.”
– Harri Manninen, Founding Partner at Play Ventures
“We at F4 Fund are thrilled to be investors and backers of Benjamin. The brilliance of their cashback app lies in its simplicity, effectiveness, and unique reach into gaming, which opens up new avenues for monetization and distribution of games. The team at Benjamin has impressed us with their knowledge in this space and their skills in delivering an unparalleled solution. “
– Joakim Achren, General Partner, F4 Fund
