Scoutmob Announces $3.25 Million in Funding, Agreement with First Data
Deals service Scoutmob has announced this morning that it has received $3.25 million in new financing, and is partnering with payments company First Data Corporation. The financing group includes AOL Ventures, Capitol Broadcasting, Cox Enterprises, Inc., Thrillist co-founder Ben Lerer and New Atlantic Ventures.
“Our vision has always been to combine a strong brand with new methods to connect locals with their cities,” Scoutmob co-founder and CEO Dave Payne said in a release. “This announcement confirms both media and transaction leaders recognize the power of our disruptive model.”
The financing will allow Scoutmob to focus on product development over the course of the next year as it hands off much of its payment functions over to the “better suited” First Data, co-founder Michael Tavani told Street Fight.
“The round is validation of our model amongst both media and payment companies,” Tavani said. “Our roadmap is a hybrid of both — we’ve always considered ourselves a local mobile media company that enables transactions. That alone has created tremendous trust and influence in our cities, and we’re working on closing that loop with the First Data partnership.”
First Data introduced its open platform OfferWise Solution in February, linking offers, provided through services like Scoutmob, to payment cards in streamlined transactions connected by a CardSpring-developed API.
With this technology, Scoutmob can now link a consumer’s intent to purchase with the actual purchase, allowing the company, Tavani said, to leverage OfferWise solution analytics to “innovate on the post-transaction hook,” or build a network rewards program and personalize offerings for particular consumers.
With more than a million users, Scoutmob has the capability to compete with much larger deals services, such as Groupon and LivingSocial, on the hyperlocal level. And with the promise of streamlined transactions and post-sale analytics, Scoutmob should further entice merchants as the company seeks to distinguish itself in the increasingly crowded local commerce sector.
“This funding and partnership is a big step in becoming the go-to app in cities,” Tavani said, “connecting consumers to local experiences in an authentic, real-time way.”
Patrick Duprey is an intern at Street Fight.