Shuffle, a newly launched startup investment platform, is investing an initial £2.5m into Manchester’s hospitality industry in the hope of driving commercial growth in the city.
Founded by former Antler VC fund partner Ollie Purdue, CEO, and Enzo Ottens, COO, Shuffle will provide upfront capital to its partner venues without requiring hospitality businesses to give up equity.
The funding can be used for new site openings, updated interiors, and kitchen renovations.
The investment is then repaid through Shuffle’s consumer-facing smartphone app, which is set to launch later this year.
The app aims to drive footfall and build customer loyalty through randomised rewards, where customers are “guaranteed” a random cashback amount. On average customers are expected to get a 20% reward, per the startup’s website.
The site also states: “We don’t have any caps or limits on the total amount you can save each month. The more you use Shuffle, the more you’ll save.”
The founders have chosen Manchester as the first location in the UK to launch and have already partnered with Madre, Medlock Canteen, Trof, and Bold Street Coffee.
Purdue said: “Hospitality owners are incredibly entrepreneurial but often struggle to access the capital needed for growth despite having a proven business model. During our conception stage, we consulted with many successful operators who were facing this problem and realised we could support them through our goal of building the biggest hospitality investment platform in the UK over the next three years.
“We also wanted to build a better rewards platform, as most existing ones are tied to uninspiring brands, devalue the businesses they aim to support, or are quickly forgotten by users. We saw a huge opportunity to invest in and partner with the best hospitality businesses while rewarding customers for spending there, and that’s how Shuffle was born,” he added.
This isn’t the pair’s first stint at building startups. Purdue previously founded the digital banking service Loot, while Ottens founded Earnr, a finance and accounting tool for creators and the self-employed in the UK.