ATLANTA, May 24, 2012 – Scoutmob, a startup revolutionizing how consumers use their mobile devices to connect to local businesses, announces today that they received $3.25 million in financing from a group that includes AOL Ventures, Capitol Broadcasting, Cox Enterprises, Inc., Ben Lerer of Thrillist, and New Atlantic Ventures. Scoutmob also announces they are teaming up with payments company First Data Corporation to help close the loop between offer, purchase and loyalty for local merchants.
“Our vision has always been to combine a strong brand with new methods to connect locals with their cities. This announcement confirms both media and transaction leaders recognize the power of our disruptive model,” said Scoutmob co-founder and CEO Dave Payne. “With a base of well over a million users, we will leverage these partnerships to continue pushing our mission forward.”
Founded in 2010, Scoutmob pioneered the evolution from first generation pre-purchased daily deals to free, spontaneous mobile offers. The Scoutmob app guides users to locally-owned businesses through exclusive offers and curated content, directly motivating millions of offline purchases. The new funds will support the next wave of product development as Scoutmob evolves as a mobile media company.
Combining Scoutmob’s strength in mobile offers with First Data’s strength in payment technology presents a powerful opportunity to innovate the way that consumers interact at the point of sale. The partnership with First Data gives Scoutmob the ability to work with First Data’s network of over four million U.S. merchant relationships, allowing Scoutmob to link the consumer’s intent to their resulting purchase with the First DataSM OfferWiseSM solution. The transaction will connect through an API developed by payments infrastructure company CardSpring. This continues the Scoutmob mission of solving issues of friction for both consumers and merchants.
“All of the necessary pieces are now in place with First Data to close the redemption loop. We can build a smarter solution by cutting through the challenges of integration with the payments stack - bypassing seldom-used technologies and clunky in-store hardware. It’s one of the big opportunities to be disrupted soon in the local mobile space” said Scoutmob co-founder and Chief of Product Michael Tavani. “We have some aggressive product plans.”
“Scoutmob has built an awesome brand in a great category, and as a result has seen spectacular consumer engagement. I think everyone knows there’s massive opportunity at the intersection of content and commerce and Scoutmob is perfectly positioned to do this as well as anyone on the local level,” commented Ben Lerer, Co-Founder and CEO of Thrillist.com.
Scoutmob connects you to the local experience in an authentic, real-time way. With exclusive, location-based deals, fresh daily content and curated experiences, the mobile app acts as a compass for everyday exploration in your city, giving plenty of good reason to get out and experience what’s around you. Founded in 2010, Scoutmob is based in Atlanta and funded by AOL Ventures, Capitol Broadcasting, Cox Enterprises, Inc., Ben Lerer, and New Atlantic Ventures. To get the app or for more information, go to Scoutmob.com.