UAE-based startup Bundle has raised $5.5 million in pre-seed funding to develop a rewards platform designed to help businesses improve customer engagement without relying heavily on discounts or cashback.

The round was led by Ethereal Ventures and Further, with participation from Nascent, GSR, Scenius Capital, Anchorage Digital, and Nuwa Capital. Founded by Bader Al Kalooti and Mostafa Wanas, Bundle plans to use the funding to expand its platform into additional international markets and accelerate product development.

Turning Individual Rewards Into Shared Incentives

Bundle’s approach is based on pooling rewards budgets from multiple businesses. Instead of each company funding its own incentives independently, participating brands contribute to shared reward pools that can support larger prizes.

Customers engaging with participating businesses can then access these rewards, while the participating companies share the cost. Bundle believes this model could give smaller businesses access to incentives that would otherwise be difficult to fund individually.

The concept is designed as an alternative to traditional discounting, which can reduce margins without necessarily creating lasting customer loyalty. Bundle aims to use larger, shared rewards to create stronger incentives for customers while helping businesses manage acquisition costs.

Scaling a Networked Rewards Model

Bundle has already tested the concept through a pilot across five markets. During the trial, the company distributed $100,000 in rewards to more than 1,100 winners, including a $50,000 top prize.

The platform is initially launching in Singapore, Vietnam, and the Philippines, with more than 50 brands already participating. Its next challenge will be expanding the network while demonstrating that a larger pool of participating businesses creates greater value for both brands and customers.

Key takeaways for fintech startups

Bundle’s model highlights how startups can rethink established approaches to customer acquisition. Key lessons include:

• Shared infrastructure can help smaller businesses compete with larger companies.
  
  
• Customer incentives need to create value without putting excessive pressure on margins.
  
  
• Network effects can become a powerful growth driver when value increases as participation expands.

As customer acquisition becomes increasingly competitive, fintech and commerce startups need innovative ways to create sustainable value. Contact us to explore how Your Fintech Story can help develop your growth and market strategy.