Electronic consumer loyalty startup Rewardle has seen its shares shoot up 11% this morning on the back of a new deal with Pioneer Credit that will bring in $500,000 of revenue.
This morning the publicly listed Rewardle announced to the ASX that Pioneer has been granted exclusive rights to push its personal finance products to the startup’s membership base of more than 2.3 million people.
The three-year deal will bring in $500,000 to Rewardle, with “a substantial proportion” scheduled to be paid in the first six months. In addition, a margin share arrangement also sees Rewardle take a cut for its members signing up for Pioneer’s lending products.
“This partnership is in keeping with our strategy of leveraging our growing network, platform data and operations to grow existing and new revenue streams,” said Rewardle managing director Ruwan Weerasooriya.
At midday, Rewardle shares were priced at 30 cents after climbing 11% since yesterday’s close.
Pioneer has also taken an equity stake in Rewardle and will provide back-office services such as company secretarial, legal and finance to save the startup approximately $200,000 each year.
“Trust is a key component of any lending relationship and Rewardle has built a trusted, digital relationship with a substantial network of local businesses and members,” said Pioneer founder and managing director Keith John.
Despite the mini revival this morning, Rewardle’s share price has been on a slide since it hit 40c two years ago. The startup was last in the headlines in December 2015 for becoming one of the first apps in Australia to use Android Pay.