Reffind (ASX: RFN) has snapped up a 14.80% stake in blockchain-based loyalty and rewards company Loyyal Corporation for US$2.3 million.
The agreement gives Reffind licensing rights to San Francisco-headquartered Loyyal’s blockchain loyalty and rewards platform, which is offered to countries within the Asia Pacific. Final licensing terms are yet to be finalised.
Under the deal, Reffind will also appoint a representative to Loyyal’s board.
According to Reffind, Loyyal is the first company to use blockchain technology for the loyalty and rewards industry. Using blockchain and smart contract technology, Loyyal developed its loyalty and rewards platform to offer multiple sectors a vehicle to boost profits and please customers at the same time.
With several patent applications pending, Loyyal has attracted several large clients including Deloitte and Dubai Points. Reffind claims there are other large clients including a major airline and US financial services company that due to confidentiality reasons, cannot be named.
“We are excited to have secured a substantial holding in the world’s leading blockchain based loyalty and rewards platform,” Reffind director Anthony Dunlop said.
“We see this as crucial milestone in our strategic growth plan, which is targeted towards being quickly recognised as the global leader in enterprise rewards, recognition and loyalty solutions,” he said.
To be undertaken in two tranches, the acquisition is expected to be finalised by mid-January.
Reffind is focussed on providing cloud-based software as a service to other businesses, employees, customers and other members of the supply chain.
The company has created the Reffind app which is a mobile platform to assist businesses with recruiting employees as well as communicating and engaging with current staff.
Commenting on gaining Reffind as a substantial shareholder, Loyyal chief executive officer and founder Greg Simon said he believed Reffind’s knowledge and experience would enable the company to expand its brand.
“This will particularly be the case in the fast-growth Asia Pacific region where technology is a key factor driving increased global and regional trade,” Mr Simon added.
Reffind shares were up 3% in mid-morning trade at A$0.034.