A trio of young entrepreneurs from the North East have quit university to launch a new app aimed at helping Durham businesses and students.
As the pandemic struck, co-founders Ben Champion and brothers Tony and Jonah Lowenstein set about launching a startup to help local businesses, following the frustration of months of lockdown closure.
The resulting platform, Fygo, goes live in April, acting as an innovative student marketing and loyalty app for firms in Durham, in which students and staff at Durham University can turn any bank card into a loyalty and rewards card using Fygo’s free mobile app.
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Students and staff link any bank card to the app through a secure interface. When they spend using a linked card at Fygo partners they instantly receive cashback. It automatically recognises in-store and online card payments, meaning small businesses can promote omnichannel sales, and those who take part can change offers to students, to encourage return visits.
The platform won the Santander Ideas Explosion competition 2020, and is one of only 10 startups in global law firm Hogan Lovells’ most recent FinTech Mentor and Momentum Program cohort.
Having secured £400,000 in seed funding from Charles Wigoder, founder and executive chairman of FTSE-250 company Telecom Plus plc, the team - which has now grown to a team of eight since last May - has partnered with several companies for launch including Visa, Mastercard, American Express, Hogan Lovells, Santander, and Evalian.
Co founder Ben Champion said: “We started work on Fygo in January of last year but quit university this time last year. I was studying management at the University of St Andrews and was the lucky one in that I started Fygo in my final term and raised the pre-seed alongside my final exams.
“Toby was studying art history at Durham and then transferred to St Andrews and Jonah was studying international relations at St Andrews. Both dropped out of their courses completely to fulfil Fygo.
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“I think the pandemic made it easier for us to leave university. Everything was taking place remotely and we could see there were going to be real issues for businesses, many who would be closed to customers for months.
“A lot of our friends are also a lot more cautious about going back into bars, restaurants and shops. So Fygo is a way to encourage them back.
“We were very consciously thinking how we could support local businesses, and there is no contract or commitment. Students and staff who have Fygo don’t have to say, show, or scan anything, and every time they spend we take a small percentage fee from the transaction.
“What we were interested in was launching in one location and making it purely for students and staff. No one else has done this before so we could see there was a high chance of success because students love free money and love to spend it in Durham.
“By making purchases at independent Durham businesses personalised, rewarding, and social, we’re helping businesses get more student customers and keep them loyal as we come out of lockdown.”
At the moment they have around 20 business set to take part when Fygo launches in a month’s time, but hopes are high that many more of the 300-plus potential businesses in the city sign up, and the team are keen to work with BusinessDurham and the Durham BID to connect with local businesses.
Charles Wigoder added: “The value proposition is powerful, and the team’s hunger to make a positive difference is evident. What’s more, by making it easy for friends to invite one another and share offers, and for businesses to gain rewards for referring each other to the platform, Fygo is set to quickly make a real difference to local and regional economies”.