Berlin-based loyalty and promotion software provider Talon.One has raised €114 million (US$134.5 million) in a growth funding round.

The investment was led by Silversmith Capital Partners and Meritech Capital, with participation from existing investor CRV.

Founded in 2015, the company operates globally with teams in Berlin, London, Boston, and Singapore, serving over 270 customers across North America, Europe, and the Asia-Pacific region.

Talon.One’s platform integrates loyalty programs, promotions, and gamification.

It supports integration with technology stacks such as Shopify and Braze, offering scalable solutions for sectors like retail, financial institutions, and grocery chains.

Customers include H&M, Adidas, Costa Coffee, and Sephora.

The new funding will be used to enhance AI capabilities, expand enterprise functionalities, and help businesses design more effective, data-driven incentive strategies.

🔗 Source: EU-Startups

🧠 Food for thought

1️⃣ The evolution of loyalty: from copper tokens to AI-powered personalization

Talon.One’s €114 million funding represents the latest chapter in loyalty programs’ 200+ year evolution from simple punch cards to sophisticated AI systems.

The loyalty concept began in the late 18th century when American retailers issued copper tokens as premiums, then evolved to trading stamps in the late 19th century, before American Airlines launched the first modern digital loyalty program in 19811.

The digital transformation accelerated in the 1990s with card-based programs, followed by mobile integration exemplified by Starbucks Rewards, which has continuously evolved since 2008 to increase engagement and spending2.

Today’s AI-powered platforms reflect a fundamental shift in how businesses approach loyalty, moving from generic discount systems to sophisticated engines that can predict customer behavior and deliver personalized experiences.

This evolution explains why 45% of US marketers now plan to use AI for managing loyalty programs3, with the global loyalty management market projected to grow from $5.6 billion in 2022 to approximately $24 billion by 20304.

2️⃣ Loyalty programs’ transformation from cost centers to strategic value drivers