Lolli, a bitcoin rewards rebate application, announced that it had raised an oversubscribed seed round of $2.25M. Investors include Bain Capital Ventures, Version One, Forerunner Ventures, and Digital Currency Group. Lolli is a rewards applications that enable users to earn bitcoins when shopping at one of their 500+ retail partners. The application operates similarly to a credit card rewards program: users purchase products at a Lolli partner site and receives up to 30% back in bitcoin.
"People haven't really thought about the consumer," Alex Adelman, founder, and CEO of Lolli, tells The Block. "People want to earn bitcoin more than they want to spend it. You can attract young, affluent users who are tech-savvy if you offer them bitcoin," Adelman added. Adelman goes on to list three reasons for starting Lolli: (1) retailers want to make money, (2) consumers want to earn more than they want to spend, and (3) retailers want to play into the bitcoin space but don't want to jump through the security hoops.
"Lolli makes it incredibly simple for people to earn bitcoin when they shop online," Angela Tran Kingyens, a partner at Version One, said. "All a user has to do is sign up for Lolli and shop at one of 750+ top online stores, and they will automatically get bitcoin deposited to their Lolli wallet. The simplicity of the product and mass appeal of shopping will lead to broader adoption of bitcoin."
While it is too early to tell, Lolli appears to be off to a good start. The company has done thousands of transactions, processing six-figures in sales. It also has onboarded thousands of users and secured partnerships with over 500 retail brands including Macy's, Walmart, and Bloomingdales. "We are working with international retailers. Bitcoin is inherently international," Adelman added.