Groupon Co-founders Invest in Belly

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December 15, 2011
By the ZippyCart Content Team

Belly, a Chicago-based startup formerly known as “Bellyflop,” has secured more than $1 million in funding from Lightbank. Lightbank is an investment vehicle owned by Groupon co-founders Brad Keywell and Eric Lefkofsky, that also contributed $1.5 million in seed funding to Benzinga this past May.

Belly integrates on and offline commerce by providing digital loyalty programs for small businesses that aims to replace traditional punch cards in favor of a more personalized approach. Personalization is one of the biggest trends ecommerce will see in 2012, putting Belly ahead of the crowd with the startup’s attempt at exchanging regular loyalty card programs with rewards that better fit business’ personalities connecting them to customers on a more personal level.

Belly works by installing an iPad in retailers’ stores to track customers’ visits. The system is designed for customers to use the iPad to scan a bar code on the Belly mobile app available for both iPhone and Android platforms. Customers also have the option to scan a physical loyalty card from Belly called a “Belly Card”. After scanning the bar code/card, a message will immediately pop up on the retailer’s iPad letting the customer know whether or not they have received a reward. The Belly application or physical card can be used at any business signed up with Belly.

Officially launched back in August, Belly not only replaces traditional loyalty cards, but also replaces the traditional rewards that can be earned using them. Belly offers an assortment of rewards, which are not always monetary and sometimes a little off-the-wall. A couple of the most random rewards include:

• A sandwich store will name a sandwich after their most loyal customers
• Punch the AlleyCat Comics owner in the stomach
• EGG the Gaztro Wagon truck – 60 Eggs & Egg the Truck as it Cruises By
• All you can eat at Devil Dawgs for 10 minutes in the store.

Currently, Belly has been installed at 285 businesses in the Chicago area with close to 50 new businesses being added to Belly every week. The application has accumulated over 18,000 users and 50,000 check-ins in the short period of time since its pilot launch and many merchants are seeing more check-ins from Belly users than Facebook, Foursquare and Gowalla combined.

There are several other startups in the loyalty services game with Belly including Womply, Offermatic, Swipely and Five Stars Card. Belly claims they offer services that differ from their competitors because they provide merchant training and a in-store iPad with every subscription. Larger ecommerce players like Google and PayPal also have plans to launch loyalty services.

Although Belly is only offered to Chicago businesses at this time, the startup is planning on launching nationally in upcoming months.