Bloomspot, a company that aims to connect merchants with customers via online offers, has sealed $40 million in new funding. The Series B round, according to the blog Evan Hugh, includes a $5 million round of venture debt from Western Technology Investment. Unlike Groupon and other daily deal sites, Bloomspot is attempting to target specific users by analyzing credit card data from merchants and users. By getting permission to analyze that data, the company says it can predict how much a user will spend based on a specific deal offer. Bloomspot is based in San Francisco. It is backed by True Ventures, Menlo Ventures, Harrison Metal and individual investors.
Featuring only the highest caliber restaurants, spas, boutiques, and other experiential merchants on its site, Bloomspot is looking to deliver only highly sought-after experiences to high-quality clientele, in a way to increase the breadth of the merchant’s local profile while introducing it to a new and desirable audience.
Bloomspot believes on this model and secured US$35 million fresh fund in Series B round of funding including $5 million round of venture debt from Western Technology Investment.
Bloomspot core business will not centered on “group deals” but to only focus on offers from high-quality merchants who are looking to connect with their best customers, that said, to connect certain vendors with loyal consumers.
“It’s a recognition system. In a way, it’s less about discounts and savings, and more about recognition and status,” – Malcomson, Bloomspot’s CEO and co-founder
One thing for sure would worry some customers – the access to credit card’s data. Here’s how it works;
Bloomspot gets permission from users and vendors to analyze the credit card data used on merchant
Bloomspot uses credit card data to predict how much a customer is going to spend based on the offer. (Bloomspot guarantee a level of profitable spend or, Bloomspot makes up the difference from their own commission, a way to make sure its vendor never lose)
But to have customers get along with this (access to credit card data), Bloomspot has a way that will reward 25% cash-back-sort-of to customers on every next purchase. how it works?
Customer purchase an offer from Bloomspot
Customer use the same credit card on merchant, to utilize the offer
Customer get 25% back on next offer purchase on Bloomspot
Customer continue using the same credit card – automatically turn to loyalty card
Loyalty card gets “Great Patron” status, entitled for special offers, not offered to public