Rise My Venture recently heard about LafaLafa, a mobile-first digital coupons and cashback aggregator, has secured $125,000 in funding from Silicon Valley-headquartered startup accelerator-cum-early stage VC fund house 500 Startups.
The five-month old LafaLafa, which is owned by Yellow Brick Road Digital Marketing Ltd, has been selected by 500 Startups for the 15th batch.
Even as a kid, Yosha Gupta loved organizing and taking the lead on situations. Hailing from a small town in Aligarh, she says business was the only thing she saw happening while growing up. Even when she entered her first job she always knew she wanted to start something of her own.
Therefore, she shifted roles between different companies at different lifecycles of their business to understand more. And eight years back, when India was just getting introduced to the startup culture, she dared to join one. Today, a 33-year-old Yosha laughs when she remembers that her age was the factor that pushed her more to venture out into something new. She was pushed by the idea to start soon before it’s too late.
Thus, Lafalafa.com came to be. Officially launched in January 2015, the venture is an online coupon and cashback selling portal. Launching their mobile app in April 2015, the firm operates from Gurgaon and Hong Kong.
On the name of the startup, Yosha says: – “My friend who is a radio jockey helped me finalize the name. We wanted something which was catchy but most importantly we were looking at something which invokes the happy feeling in people after saving money. It’s more like ‘laugh away to maximum savings’.”
The company recently got selected for 500 Startups Accelerator Programme. Yosha says that there were a couple of interviews before getting shortlisted. The criterion for getting selected was not just the potential of the idea but also the size of the addressable market accompanied by the traction gained by a firm.
Yosha explains that the accelerator will not just provide her company with access to a strong network but also provide mentorship from the who’s who at Silicon Valley. This will help them not just learn from the innovation happening around but also help raise funds in the future. Yosha says – “For a business like ours, scaling is not just the only requisite. Innovation plays a major role in defining how we get more users to utilise cashbacks and discounts on our platform. And we can’t wait to get to Mountain View to learn from the best minds of the industry.”
As a part of the programme, the firm will receive a seed investment of USD 1,25,000 and get to spend four months in Mountain View.
The firm also claims to be one of the few Indian mobile startups chosen for Facebook’s Global FB Start programme to provide recognition and promotion to good mobile apps. As part of the recognition, they have been given access to USD 30,000-worth of credit across tools like Facebook advertising, Parse credits for push notifications etc.
Lafalafa.com is closing approximately 1,000 transactions on an average every month. It has an active network of more than 500 partners including all e-commerce platforms and most Indian hyperlocal startups. It claims to be the only cashback business with significant corporate tieups like WeChat and Aircel for real-time mobile recharge as a redemption option.
Since its launch in April, the company’s application has already touched 3,00,000 downloads. It also claims to be driving a GMV of Rs two crore every month for partner e-commerce stores like Flipkart, Paytm, Snapdeal and Amazon.
Like most cashback websites, Lafalafa.com’s revenue comes from commission on driving transactions. For high-end products like fashion apparels, the commission ranges from 20-25 per cent while for electronics it can be three to five per cent.
Moving forward, the firm plans to create a healthy balance between the demand (partners) and supply side (customers).
Yosha says that on the supply side, their audience right now comprises of tech-savvy individuals having time to look for cashback. However, the company plans to change the same expanding its audience base. By the middle of next month, the firm is planning to launch ‘Conversational Commerce’ which will include a personal deal manager to guide individuals on the best available offers in the market.
While looking at the demand, Lafalafa is striving to bring exclusive offers and partnerships to its users. Out of the active network of partners, Freecharge and Shopclues are some of the few which exclusively provide cashback and discounts on their portals. They are also looking at bringing hyperlocal delivery startup like Grofers on board in a couple of days.
Yosha says – “The aim is go beyond and provide cashback and discounts on possibly anything customers would like to save upon“.
Lafalafa is also actively looking at targeting recommendation of offers based on user preferences, thereby making the customer experience truly seamless and personalised.
Though still not decided upon, the founder doesn’t rule out geographical expansion. She says that the company is evaluating Indonesian and Vietnamese markets for possible expansion next year.
Going strong with its high-strung partnerships, Lafalafa.com seems to be doing something interesting by roping in hyperlocal startups in the race. With newer startups coming up, this increases the purview and scope of what could be brought under the discounting or cashback ecosystem.
Industry insiders claim the affiliate or performance marketing space is growing at 500 per cent over the next couple of years. Thus, with this segment here to stay, it will be interesting what innovation companies deal and couponing businesses like Groupon India, Pennyful, Encashit Mydala, Coupondunia and Cashkaro will bring in to rope in more customers.
Did you know HOW MUCH you can save by shopping online through LafaLafa?
We aim to provide you MAXIMUM savings on all your online shopping. We are the cashback site that gives you information about all the possible offers and discounts that you can get for online shopping in one place and LafaLafa Cashback is the cherry on top as it is ADDITIONAL SAVINGS above any other offers and coupons that you use. We don’t charge our members even a single penny – LafaLafa is free to join & free to use.
What makes us different?
1. The BEST & the MOST Offers : You will find the widest selection of offers across categories and for all the top online stores like Jabong, Flipkart, Amazon, Myntra only at LafaLafa.
2. LafaLafa Cashback : Through LafaLafa.com you can earn Cashback for your shopping on most of our 200+ partner stores. All you need to do is visit the store website through LafaLafa.com & shop. Saving & Earning Money was never this simple!
3. Bank Offers : We make it easy for you to decide which credit card to use as we have also got all the bank offers for your convenience. Even though we don’t get paid for transactions when you use bank offers, but helping you find the best offers is most important for us.
4. Absolutely Free To Use : Using LafaLafa.com is ALWAYS free. There is no signup fees, no joining fee or any other hidden cost. We are paid by the stores we promote like Myntra, Snapeal, Zovi and India Times Shopping and in return we provide that to you as Cashback.
5. Best Service : The best shopping experience for our consumers is our mantra and for any queries our customer experience team will respond to you within 24 hours.
6. No Spam Offers : All the offers on LafaLafa are carefully screened and selected for their authenticity and there is no third party advertising on our website either as we can understand how bothersome that can be
7. Refer To Earn : Recommending us is the best thing you can do for us and we will make it worth your while to do that. Get your friends onboard, and receive 10% of your friends payable cashback FOREVER! You can do the math for how much you can save – imagine inviting a 100 friends and if on an average they earn Rs. 10,000 cashback every year, that’s straight Rs. 1,00,000 annual referral cashback for you. WOW! We are sure you have 100 friends who love to shop.
One-stop-shop for ALL offers
Admit it! Till now looking for the best deals online has been a bit like shooting in the dark. You want to buy something, you look up a couple of shopping websites, if you are lucky you find it at a discount and you buy from the website that is selling it cheaper. You pat yourself for getting yourself a deal!
But wait – Did you remember to use the correct bank’s card that could have given you another 10% off? Did you know that your other favorite website had a Sale on? Did you have the best coupon code? And did to know to top it all, you can also get CASHBACK. It can all get a bit too much.
At LafaLafa, we believe that before shopping online, you should know all possible discounts that you can get :
1. Your favorite Stores provide their own DISCOUNTS and offers from time to time.
2. Stores and Brands also give discount COUPONS
3. Banks give you offers and cashback
4. LafaLafa gives you EXTRA CASHBACK on top of all other offers, the cherry on top!
We do the Searching, You Get the Saving!
In LAFALAFA you have a discount-obsessed shopaholic friend who will go to the farthest corners of the Online Shopping Mega Maze and dig out the best deal for you. You can compare offers across Stores and Banks – we even include bank offers here for your convenience even when we do not get a commission for these offers.
We display the hottest offers along with the applicable coupons and LafaLafa cashback across all the top online stores.
This article has been well researched by Rise My Venture team.