With everyone from Google to American Express doing daily deals, it seems sites would have a hard time setting themselves apart. But Bloomspot, which claims it has a model based on success for both merchants and customers, now has a whole slew of investors who believe it can do so.
The company has recently been injected with $40 million in funding, reports TechCrunch, including a $35 million Series B round of funding co-led by InterWest Partners and Columbia Capital, and boasting investors like former Expedia CEO Erik Blachford, and former Sirius XM chairman and CEO Gary Parsons. Additionally, it has been given another $5 million round of venture debt from Western Technology Investment.
Instead of offering the usual group discount deals, Bloomspot works with high-quality merchants seeking to connect with loyal customers. The company uses credit card data from past deals to predict how much customers will spend with a merchant, and guarantees each vendor a minimum level of profitable spend with each deal. If the offer doesn’t result in a profit, Bloomspot will make up the difference from its own commission.
As for customers, they can use their credit cards like loyalty cards, and can receive rewards for return purchases with vendors.