Bath Start-up sold for eight figure sum
Bath start-up Lux Rewards has been sold with an eight-figure valuation.
Founded in 2015 by Bristol-born James Courtney while studying at the University of Bath, aged just 21, Lux Rewards started as a dining rewards app, connecting customers with high-end restaurants. Despite early backing from the Just Eat Accelerator and local angel investors, the start-up struggled in its early years. At one point in 2019, the business was just two weeks from shutting down entirely.
The business has now reportedly been sold to global software company Enigmatic Smile, a London-based customer rewards technology provider, which first invested last year.
Last year, Lux Rewards won Fintech of the Year at the EntreConf Awards, sponsored by Cazenove Capital in Bristol last September.
On winning the award, the company said: "We also want to extend our deepest gratitude to our partners at Enigmatic Smile Limited. Since their investment last year, we’ve seen a remarkable 400 per cent growth in revenue, a milestone that wouldn't have been possible without their unwavering support. A special thank you to Bish Smeir for your continued belief in our vision."
James, a double winner of the University of Bath’s Business Plan Competition and an Entrepreneurship Scholarship Awardee, said: “In those early days, I was literally walking into restaurants, trying to convince them to join the platform. I even worked with The Clifton Sausage to hand out free samples on the streets of Bath just to get people to download the app.”
He remembers spending £1,000 to put on an exclusive event at a wine bar, offering free wine and tapas in a bid to win over a major Bristol accounting firm. “Only one person turned up,” he recalled. “It was the most embarrassing day of my life.”
Instead of focusing on direct consumer downloads, Lux Rewards pivoted to partnering with banks, airlines, and employee benefit platforms to access their big customer bases. This shift, combined with a successful Crowdcube raise, gave the business the traction it needed.
Lux Rewards was supported by SETsquared Bath and pitched at several SETsquared Investment Showcases.
