Venture Infotek Rolls Out New Reward Program

Chennai: | Updated: Jan 24 2003, 05:30am hrs
Venture Infotek Global Pvt. Ltd (Venture Infotek), a venture capital funded company, has rolled out a unique shopping reward program by leveraging its technology infrastructure. The scheme rides on the existing Rs 50 crore information technology investment which provides the back end for credit/debit card transactions and will provide customers with rewards points for purchase of goods at chosen establishments.

The scheme has been launched in Chennai and Coimbatore. It will be shortly rolled out in other parts of the country. We plan to enroll 75,000 merchant establishments and garner 70-80 lakhs customers in about six months, said Mr Girish Rangan, managing director, Venture Infotek, at a press conference held here in Chennai.

The members of the customer reward program are given a Get More card on the payment of Rs 99, which would enable them to get reward points at the select outlets, irrespective of the good purchased or amount spend. The reward would depend on the retailers discretion but a minimum amount has been set. The points, once accumulated, can be exchanged for gifts.

The scheme leverages the technology infrastructure already set up by the firm. The company has already provided electronic data capture (EDC) terminals to over 24,000 merchant establishment (only some of them will be chosen for the Get More scheme) and puts through Rs 6,000 crore worth of transactions annually. The company also provides the back-end for the BPCL Petrocard.

Retailers will have to pay a two-year fee of Rs 20,000 to enroll into the scheme. They would carefully be selected based on the price of the products, the quality and the range of goods available. The company would get a share of the reward points, which will provide it a continuous stream of revenue.

The scheme would help customers discounts all year through. It would help retailers find new customers, Mr Rangan explained.

On the technical side, the IT team of the company has developed the application to run on the EDC terminals. We have supplied these machines to the market and know them best, an official said.

The firm also plans to leverage on its technological infrastructure to provide other services such as bill payments. It already provides recharging of prepaid mobile phones. The technology infrastructure is very versatile and can be used for a variety of purposes, an official said.

Venture Infotek has been funded by Warbus Pincus, Walden International and Global Internet Ventures. The strategic investors include IBM and VISA.