Leal, a retail tech company based in Bogota, Colombia, has raised $5 million in a recent funding round, described by CEO Camilo Martinez as a “pre-Series B” milestone. The funding round was co-led by LEAP Global Partners and Rakuten Capital, with participation from Morro Ventures and Salkantay Ventures. This comes approximately two years after Leal secured $10 million in Series A capital, co-led by Rakuten and IDC Ventures, bringing the total venture-backed capital to $20.5 million.
Leal specializes in customer engagement for business-to-consumer brands, e-commerce sites, and financial institutions across Latin America. The company enables merchants to build customer databases, offering cashback and rewards on everyday purchases to loyal customers. Leal has integrated with 160 different point-of-sale systems, including both local and international players.
Despite facing significant challenges during the global pandemic, where they lost 85% of their merchants heavily relying on brick-and-mortar retailers, Leal made a remarkable comeback. In 2021, they introduced a new feature allowing grocery shoppers to earn Leal Coins by scanning paper receipts. The company expanded its rewards program throughout Mexico, Colombia, and Central America, now working with over 1,000 brands across 15 industries in eight countries.
With the new funding, Leal plans to achieve $10 million in annual recurring revenue, focusing on further penetration in Mexico, omnichannel communications, and developing tools for smarter data collection, interactions, and automation of benefits. The company also aims to enhance its artificial intelligence models for more personalized app rewards and benefits, utilizing generative AI for improved chatbot interactions between brands and consumers. Strengthening channels like WhatsApp and Facebook Messenger is part of Leal’s strategy to diversify communication sources and enhance customer engagement through AI-driven insights and experimentation. The ultimate goal is to create a more personalized and automated platform, reducing the need for human intervention and ensuring scalability.
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