SG loyalty platform raises $2.6m in seed money to give users free vacations

Customer loyalty and rewards programs are some of the longest-standing forms of marketing strategies for businesses. The Asia-Pacific region, for instance, is home to 40% of the world’s cashback websites.

While discounts and vouchers have become the norm for rewards platforms, Heymax is looking to take this up a notch. The Singapore-based company wants to help users “earn one free vacation every year” using their Max Miles points, CEO and co-founder Joe Lu said in a statement.

To help achieve this goal, Heymax has raised US$2.6 million in a seed round led by January Capital, according to a press release from the company. Other investors include Tenity, Ascend Angels, and XA Network.

The startup, which was founded in 2023 by four ex-Meta engineers, allows users to earn Max Miles through purchases from over 500 businesses, including ecommerce platforms like Lazada and Shopee. Users can also get Max Miles from buying vouchers from Grab, Klook, Foodpanda, and other platforms via the Heymax app.

Max Miles can be converted into miles and points at 25 airline and hotel partners by a direct transfer to the loyalty program. Users can also opt for a “cash-for-miles” program: Heymax will issue cash in the form of a virtual card, with the exact amount needed to purchase the miles or points directly from the airlines or hotels.

In Heymax’s statement, investor Roy Ong of January Capital noted that many popular rewards programs were “locked within the close ecosystem of a single company,” resulting in “hyperfragmentation” that makes customer acquisition more costly for merchants. This also makes it more difficult for consumers who wish to maximize their ability to earn rewards.

“The team at Heymax has a clear desire to break the mold and solve these challenges for both merchants and customers,” Ong added.

Meanwhile, Heymax also noted how January Capital’s “deep understanding of the ecommerce and rewards space” made it an “ideal investor” to support the startup’s future growth.

January Capital previously invested in cashback platform ShopBack.

As a young startup, Heymax has gone through growing pains. For example, some users have complained about delays in obtaining miles for purchases made via the platform.

In response, the company says that its senior leadership team answers customer queries “approximately 16 hours a day” via its Telegram group chat, which has over 6,000 members.

The seed funding will go towards expanding Heymax’s operations beyond Singapore and Australia, where it set up shop in November 2023.

Lu tells Tech in Asia that Malaysia, Thailand, and Hong Kong are key markets, “as these countries are locations that our existing customers frequently travel to.”

Apart from overseas expansion, Heymax will use the funds to invest in product R&D as well as hire for operations, customer support, engineering, and product design.