Droplet begins second bid with Crowdcube

Droplet begins second bid with Crowdcube

Rapidly growing mobile app Droplet, a fee-free loyalty and payment platform, is one of the first companies in the UK to return to crowdfunding outlet Crowdcube for further funding.

Droplet, which was founded in Birmingham in 2012, hope that this second bid will help them achieve their goal of functioning in 20 cities by the end of 2016.

The decision comes after the success of Droplet achieving its 12-month business plan of setting up and rolling out in 10 major cities, including Cambridge, Edinburgh, Exeter, Glasgow, Leeds, London and Norwich.

“In the UK, £1 in every £7 spent is attached to a loyalty programme. The problem is that most people don’t want to carry around a wallet stuffed with paper and plastic cards,” explained Steffan Aquarone, who started the firm with fellow local entrepreneur Will Grant.

“We know from apps like Starbucks that mobile offers a powerful way for merchants to make things simpler and easier for their customers - but people don’t want their phones crammed with different apps either and that’s why we built Droplet as a universal app that any business can use.”

He continued: “Last year we had an established business and user base, but no loyalty features or revenue. Since we added Rewards to our offer our active usage has gone up four-fold and our income is growing between 50 and 100% a month.”

The company will look to secure upwards of £450,000 of funding in their second round which goes live on Friday 19 February.

Luke Lang, co-founder of Crowdcube, added: “Tech businesses, like Droplet, are always popular with our crowd of 245,000 members who have invested £45.5m in the sector, so it’s great to see the business return for a second round of funding on Crowdcube.”

When BQ spoke with Steffan about what makes a good leader, he told us: “Being able to make the right calls, most of the time.”

In Droplet’s case, their most recent right call has came not only in their Crowdcube venture, but also in securing a landmark deal with Elior, a global contract catering company that looks after 3.8million customers across 13 countries every day.

Rachel McEntee, offer development Manager at Elior, added her support: “We assessed several mobile payment and loyalty providers and chose to launch Droplet at one of our key business and industry clients.

“The results so far have been very convincing – within two weeks, 285 people have made over 1,300 payments at one site with the app and it’s growing fast.”

Droplet is the only payment system that is fee-free for merchants, who pay a fixed monthly subscription to run their loyalty programme through the app.

“We’re at the stage where we’re very nearly ready to raise the sort of money that powers the likes of Deliveroo,” added Steffan.

“Once the growth is predictable, larger financiers come in to speed it up, which is how challenger businesses like ours get so big, so fast.”

BQ caught up with Steffan in October to find out more about Droplet, how he manages a growing business day-to-day and his hopes for the future. Read our Meet the MD piece here.