In a surprising turn of events, Bink, the innovative loyalty app backed by Barclays and Lloyds Banking Group, has ceased trading and entered liquidation. The fintech startup, which aimed to revolutionize loyalty programs by linking consumers’ payment cards with retailers’ loyalty schemes, failed to secure fresh funding, leading to its shutdown.
Major Investments and Partnerships
Bink first made headlines in 2019 when it secured a major partnership with Barclays, which invested approximately $10 million and offered access to its six million UK mobile customers. This strategic move was designed to integrate Bink’s loyalty solution into Barclays’ vast customer base. In March 2022, Lloyds Banking Group followed suit with an undisclosed investment, further solidifying Bink’s position in the market.
Financial Struggles and Attempts to Stay Afloat
Despite these significant investments, Bink struggled to maintain financial stability. The company last secured £9 million in March 2023 from parent group Loyalty Angels and existing investors. This funding was intended to sustain operations through Q1 2024. However, the financial safety net proved insufficient following the resignation of chairman Bob Wigley and several cost-cutting measures.
The End of the Road
With the failure to attract new funding, liquidators have been appointed to ensure an orderly wind-down of Bink. The company, which made all 45 employees redundant last month, is now focused on wrapping up its operations. The shutdown of Bink marks a significant setback for the loyalty app sector, highlighting the challenges fintech companies face in securing sustainable funding and achieving market penetration.
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