Ifeelgoods, Which Gives People Rewards For Actions, Announces Partnership With A $55 Billion Company
Ifeelgoods is an interesting startup which provides virtual goods rewards to people in exchange for performing actions. Large marketers want to give consumers rewards to incent them to buy their products–things like discounts, or vouchers, or other goodies–and Ifeelgoods provides the technology and the network to make that happen. Ifeelgoods was founded by French people but is based in Silicon Valley and includes Kima Ventures among its investors. (Full disclosure: I once co-founded a company funded by Kima Ventures.) Other investors include Idinvest, Tugboat Ventures and Jaina Capital.
Today Ifeelgoods is announcing a partnership with a Japanese company named Itochu . You may not have heard of Itochu, but you probably have heard of their brands, such as Paul Smith and Converse. They also own the third-biggest family convenience store chain in Japan. Itochu is a Fortune Global 200 company with revenues over $55 billion.
The way the partnership works is that Itochu will run the Ifeelgoods platform exclusively in Japan. This is a pretty huge deal. Through its convenience store chains, Itochu already sells a lot of gift cards and other rewards and is deeply involved in the rewards market. Itochu has said that it expects to generate $1 billion in incremental gross revenue thanks to this deal–that’s not nothing.
I personally find the rewards space interesting because I find the manifold ways marketers get people to buy stuff to be fascinating.