Sweet Tooth Inc., a Waterloo-based developer of eCommerce customer loyalty software, has secured $2.25 million in funding. Of this, a total of $1.5 million in seed financing will come from OMERS Ventures, the Ontario government funded MaRS Investment Accelerator Fund (IAF) and Points International. An additional $750,000 is forthcoming from other sources.
Launched in 2009, Sweet Tooth provides a turnkey, user-friendly system for merchants to create ‘points’ programs and deliver online and in-store rewards to their customers. Sweet Tooth has helped over 1,500 merchants actively engage and reward more than 15 million consumers worldwide.
“As online shopping continues to grow, the Internet has become retail’s new battleground for customer loyalty and retention,” said Sweet Tooth founder and CEO Jay El-Kaake. “There are thousands of competitors for every eCommerce dollar, so when a customer makes a purchase online it is imperative that the customer is retained and engaged – or their next purchase might be with the competition.”
In the three years since it launched, Sweet Tooth has experienced strong growth. Collaborating with OMERS Ventures, the IAF and Points International will help expand Sweet Tooth’s team and loyalty platform in order to accelerate this growth.
“Sweet Tooth really epitomizes what we are looking for in seed stage companies. They have a great product, with a huge market potential and strong management team,” said Derek Smyth, Managing Director of OMERS Ventures. “Sweet Tooth is an example of the high quality companies we are seeing in the Kitchener-Waterloo region, and we will continue to focus time, energy and expertise there to source new investments.”
“The online retail sector has potential for significant growth over the next couple years. Key enabling technologies and products, such as the Sweet Tooth loyalty platform, have the potential to further accelerate the transition from brick & mortar retail to ecommerce” said Dan Mathers, Investment Director, IAF. “Sweet Tooth represents our 51st investment in the technology startup space, and our 13th investment in Waterloo Region.”