Hong Kong-based digital coupon platform Mezzofy has on Wednesday announced the completion of Pre-series A funding round of $2 million to bring the start-up’s global expansion plan to life and support its product advancement for the web3 future.

The Pre-series A funding round was led by Isola Capital’s IPVF VII with participation from Ooosh Tech Lab, as well as co-investment capital from the Hong Kong government-backed the Innovation and Technology Venture Fund (ITVF), Mezzofy said in a statement.

With its Pre-series A funding, Mezzofy will deepen its presence and gain greater market share in these markets, at the same time go global to reach the United States, the largest digital coupon market, as well as in Europe.

The company also plans to advance its product capabilities using big data, AI and blockchain technologies.

“The growing popularity of digital payment and ecommerce among Hong Kong consumers aids the digital coupon market to bloom,

“However, some consumers face a pain point when using digital coupons is that once they receive it via an app, it has to be stored in their own device, they cannot pass it to their friends and families, unlike a physical coupon, hindering them to actually use it,” said Dicky Ying, Co-founder and Chief Executive Officer of Mezzofy.

“We have long identified the issue thus we have set the digital coupons as transferable by default in our solution; consumers can easily share it, just as sending a message to their friends,

“These are just one of the things that make Mezzofy unique in the market and stand out in the competition,” he added.

Currently managing a team of 40 members spanning across research and development (R&D), product development, operational support and commercial functions at offices in India, Singapore, Malaysia, and the Hong Kong headquarters respectively, Mezzofy has managed 400 million digital coupons across 15 markets (Hong Kong, Macau, Mainland China, Taiwan, Singapore, Malaysia, Japan, Korea, Indonesia, Thailand, Vietnam, India, Cambodia, the Middle East, and the United Kingdom), the value of which exceeds $5.1 billion.

“Mezzofy is an exceptionally promising FinTech company, especially given its ability to successfully scale and grow its operations in multiple markets in Asia over the past seven years,

“We have confidence in Mezzofy and its ability to continue to innovate and develop advanced technologies and applications, and we are excited to be an important partner in Mezzofy’s exciting journey,” said Anthony Chan, Chief Executive Officer of the lead-investor Isola Capital.

Cited Transparency Market Research, Mezzofy said the global digital coupon market is expected to grow at a compound annual growth rate (CAGR) of 18.6 percent from 2021 to 2031, expected to cross the value of $29.7 billion by 2031, with Asia Pacific (APAC) being the second-largest market.

It noted that nearly 100 brands across the Asia-Pacific region, including Maxim’s Group, Starbucks Hong Kong, Hong Kong Electric, Shell, SaSa, Hong Kong Housing Society, and Hyatt Hotels Corporation have chosen to run their digital coupon campaigns on the Mezzofy platform.

Mezzofy’s coupon-as-a-service (CaaS) model allows corporations to use the product right out of the box without having to invest an upfront cost to develop their own platform from scratch and can also integrate with their existing mobile apps, customer relationship management (CRM), point of sale (POS) or enterprise resource planning (ERP) systems seamlessly via Mezzofy application programming interface (API).

Compared to physical coupons, it said marketers can reduce over 87 percent of cost running their coupon campaigns digitally, at the same time understand customer behaviors through analyzing data of the digital coupon usage for optimizing marketing and sales strategies.

More importantly, as fraudulent coupons could cause severe damage of millions of dollars to retailers annually, Mezzofy said it makes every digital coupon serialized and traceable, reducing risks of fraudulent digital coupons to just 0.00005 percent, thanks to its proprietary technology.

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