Waterloo-based e-commerce startup Sweet Tooth has landed $2.25 million in seed financing from a slate of investors that includes OMERS Ventures, MaRS Investment Accelerator Fund (IAF) and Points International.
The funding, announced today, will help the three-year-old company meet fast-growing demand for its customer loyalty software, which is now in use by more than 1,500 retailers in their online stores.
"Sweet Tooth will be using this all-Canadian financing to hire more employees and support a new expansion strategy that includes a new subscription-based pricing model," Jay El-Kaake, Sweet Tooth's CEO, told Communitech. "This will also include a free version for small merchants."
When profiled by Communitech last September, Sweet Tooth's 17 employees were working elbow-to-elbow in the Accelerator Centre and were looking forward to moving into a larger suite. The company now has 28 employees and is still hiring, as revenue continues to grow at roughly 12 per cent per quarter.
Sweet Tooth will be available on multiple e-commerce platforms in the coming year, but in the longer term, the company plans to expand beyond e-commerce to offer integration with point-of-sale, enterprise resource planning, employee motivation and mobile systems.
"Sweet Tooth will soon be the standard for customer loyalty systems," El-Kaake said.
OMERS, IAF and Points are providing $1.5 million of this seed round, with unnamed investors putting up the remaining $750,000.
For more information, see the official press release.
