Loyalty program solutions provider Engage People secures $3M in growth financing from BDC Capital
TORONTO, February 23, 2021 – Engage People Inc., a Toronto-based global technology provider that redefines the way customers spend loyalty reward points, has obtained $3 million in non-dilutive growth financing from BDC Capital’s Growth & Transition Capital division. The company’s suite of technology offerings includes loyalty platform Podium, which enables end-to-end management of loyalty programs, and a host of redemption technologies including Access+. Engage launched Access+ last fall to give loyalty program members the ability to make purchases on participating retailers’ websites directly in the checkout flow using loyalty points.
Engage People has gained remarkable traction since it was established in 2015 following the merger of Myaxs Inc. and RAW Inc. and the acquisition of Fairlane Performance Management Inc. Today, it counts many of Canada’s banking institutions as customers, as well as large credit card issuers, U.S. financial institutions, a large telecommunications company, a large APAC insurance provider, and a number of prominent ecommerce partners, to name a few.
Engage People sought BDC Capital’s financing to continue its organic growth and assist with the development and deployment of its services to new and existing clients. This financing comes in the form of a patient quasi-equity loan tailored to the client’s situation, which features a small cash coupon upfront and mostly back-ended returns. This arrangement is intended to reduce the impact on the company’s working capital as much as possible so that it can hold on to the liquidity it needs to continue to scale quickly.
“We’ve built technologies that make it possible for loyalty program members to pay with their points as easily as they’d pay with a credit card or other payment option,” said Jonathan Silver, CEO, Engage People. “The global pandemic has brought the need for alternative currencies to the forefront for both consumers and brands, and as such, we’re experiencing impressive traction and high demand for our offerings. We plan to leverage this growth financing from BDC Capital to provide additional access to our pay-with-points capabilities for our expanding network of bank and retail partners in North America.”
This transaction was led by Simon Mills, Director, Growth & Transition Capital, at BDC Capital in Toronto. “Engage’s management team has the right combination of skills and experience to drive the company forward and execute on its growth plan,” says Mills. “The company has established a formidable and highly defensible position in the industry, and we believe that their growth will continue.”
About Engage People
Engage People is a global technology provider that redefines the way customers spend loyalty reward points. Serving as the conduit between banks, retailers and their customers, Engage People allows consumers to make everyday purchases with loyalty points, giving them the flexibility to buy what they want - whenever they choose. By offering pay with points, Engage People unlocks loyalty points that have been accumulated but not spent. Top banks and retailers around the world rely on Engage People for its first-of-its-kind loyalty ecosystem. With headquarters in Toronto, Ontario, Canada and offices in the U.S., Canada and Italy, Engage People has been ranked on Canada’s Fastest-Growing Companies list by Canadian Business and PROFIT. For more information visit: www.engagepeople.com.
About BDC Capital
BDC Capital is the investment arm of BDC, the bank for Canadian entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.