New Delhi: BlueBook, a discount and deals app, on Tuesday said it has raised $500,000 in a seed round led by Indian Angel Network (IAN).
LetsVenture, a start-ups investment and discovery platform, and independent investors from Singapore and the US also participated in the round.
IAN member Avinash Vashishta, who served as the chairman and country managing director at Accenture, and independent investor Srinubabu Gedela, the founder of publishing house OMICS International, will join the board of BlueBook.
“The capital raised will be deployed in consolidating the merchant and user base in Hyderabad, Bangalore and Gurgaon, apart from investing on the product and technology to offer deep customer analytics, loyalty solutions for merchants and unique payment solutions. We aim to be present in all major metros in the next few quarters,” said BlueBook co-founder Varun Kumar Akula in a statement.
Founded by Akula, Alok Medikepura Anil and Reetika G. in 2013, BlueBook provides discounts and deals that can be used at merchants. The venture was started as a discount voucher book in 2013 and transitioned into a mobile app in November 2015.
BlueBook enters into year-long exclusive contracts with merchants and curates offers to drive new customers and incentivize them on multiple visits. It has partnerships with brands like Biereclub, Brewsky, Naturals, Bodycraft and O2 Spa, and works on a subscription model where users pay a monthly fee of Rs99 to avail of all the discounts at restaurants, bars, cafes, spas, wellness centres and entertainment outlets. The redemption at the outlets happen through a four-digit PIN authentication.
The service is currently present in Hyderabad, Bangalore and Gurgaon. The company claims it has over 100,000 users and tie-ups with over 1,200 merchants.
“We at IAN believe that BlueBook has global and compelling product with a potential to cater to a high growth market. We are confident that with the right mentorship and market access that IAN provides them, they will scale to become one of the largest brands in the O2O (online-to-offline) space, said Padmaja Ruparel, president, Indian Angel Network.
According to the company, organized food services and wellness market is expected to reach $18 billion by 2016 and $32 billion by 2021. Out of this BlueBook is addressing a serviceable market of $300 million.