utu, a travel technology company that focuses on tax-free shopping, has successfully closed a deal worth US$33 million. The transaction encompasses both an acquisition and a funding round, with a portion of new funding provided by SC Ventures and the rollover of previous investments from Singapore-based investors who supported utu through the pandemic period. SC Ventures is a business unit within Standard Chartered that serves as a platform and catalyst for promoting innovation, investing in disruptive financial technology, and exploring alternative business models.
Co-founded by travel retail and VAT refund veteran Asad Jumabhoy, utu collaborates with refund and travel industry partners to enhance refund value through B2B and B2C solutions. By integrating payments, rewards, and shopping, utu introduces value for tourist shoppers, retailers, VAT refund operators, and the tax-free shopping value chain. Currently, utu collaborates with 10 global airlines, including Air France-KLM, Emirates, Etihad, Qatar Airways, and Singapore Airlines, as well as Accor, Europe’s largest hospitality brand.
Additionally, during the Covid slowdown, utu forged more key partnerships with global airlines, hotel chains, and retail brands. This latest deal will empower utu to scale its products on a global scale.
In a strategic move, utu also announced the acquisition of CardsPal, a Singapore-based platform specializing in hyper-localized rewards promotions, for an undisclosed amount. This acquisition will accelerate utu’s growth by leveraging CardsPal’s mobile-first technology and integrating its workforce into the wider organization. A crucial factor in utu’s decision to acquire CardsPal is SC Ventures’ support in incubating the startup, enabling it to evolve into a fully-fledged tech platform that utu can harness to enhance its tax-free shopping offerings.
Asad Jumabhoy, co-founder and CEO of utu, emphasized the ripe opportunity for a technology-driven transformation in the cross-border travel market, particularly in tax-free shopping. By enhancing the value of VAT and GST refunds for travelers, utu has put its own unique spin on the cross-border retail experience and devised a technology-based business model that targets previously untapped value. The hope is that this strategic approach will benefit all stakeholders, including brands, hotels, airlines, and VAT refund operators, while also enabling governments to efficiently recycle VAT refunds within their borders.
This acquisition also equips utu with a digital marketplace, a promotions engine, and a self-service merchant registration portal. It will also expedite utu’s expansion into major tax-free shopping markets, such as Italy, Thailand, the UAE, and approximately 50 countries offering VAT and GST refunds. Furthermore, utu plans to integrate CardsPal’s hyper-localized retail experience into a pay-with-points offering for its users.
Gautam Jain, Member at SC Ventures, highlighted CardsPal as a prime example of innovation in the travel industry. Jain expressed enthusiasm for utu’s continued success as it scales its products globally using CardsPal’s technology.
