PunchTab, a startup that offers a social loyalty platform for consumers, publishers, and businesses, has raised $4.4 million in Series A financing, led by Mohr Davidow Ventures. The startup previously raised $850,000 in seed funding from Mohr Davidow Ventures, Embarcadero Ventures, and angels Venky Harinarayan, Anand Rajaraman, and Nick Sturiale.
For background, PunchTab allows publishers to give reward points to users who check in to a site or blog every day. Visitors, which authenticate via Facebook Connect, can earn points for Facebook comments, WordPress comments and Facebook likes. Once a publisher rewards a user, the visitor can redeem the reward through the PunchTab rewards catalog.
The startup’s companion ‘PunchBowl’ mobile app (now rebranded as PunchTab Local) takes more of a local angle and allows businesses to create and publish giveaways. PunchTab Local gives consumers opportunities to enter local business giveaways by taking social actions. So customers receive one entry when they “like” a business’ Facebook page, Tweet, or email links to the giveaway.
Currently, PunchTab powers more than 3,000 loyalty programs and thousands of giveaways, and reaches more than 7.5 million users each month. Using PunchTab’s platform, the startup says that businesses have experienced a 50 percent increase in Facebook Fans, up to a 100 percent increase in repeat site visitors, and an increase in online purchases.
PunchTab, which was founded by YouSendIt founder Ranjith Kumaran, will use the funding for product development.