Adaverse, a prominent Web3 venture builder, has allocated a substantial pre-seed investment of $500,000 to Mithu, a burgeoning loyalty platform aggregator targeting the restaurant and cafe industry in Saudi Arabia. Mithu’s primary objective is to tackle a significant issue within the loyalty program market, where customers face difficulties managing multiple loyalty programs, leading to the annual expiration of billions of dollars worth of points.
Untapped Market Potential
The current landscape in Saudi Arabia shows a glaring gap in the adoption of loyalty programs, with only 2.5% of restaurants offering such initiatives. This statistic underscores a vast potential market that remains largely untapped. On a global scale, approximately $100 billion worth of loyalty points expire each year, a figure that highlights the inefficiency and fragmentation of existing loyalty systems. Furthermore, customers typically manage an average of 17 loyalty programs, with a significant churn rate of 68% within the first year.
Mithu’s Innovative Approach
Mithu proposes an innovative solution by consolidating multiple loyalty programs into a single, gamified application. This approach aims to enhance customer engagement and assist businesses, particularly small and medium-sized enterprises (SMEs) in the food and beverage sector, in retaining their clientele more effectively. Despite being founded earlier this year, Mithu has swiftly gained traction, securing agreements with approximately 200 restaurants in Riyadh.
Strategic Investment and Expertise
The founder of Mithu, Mohsin Qureshi, expressed enthusiasm about the partnership with Adaverse, emphasizing the venture builder’s proficiency in Web3 and gamification as crucial elements in developing a tokenized version of Mithu’s app. This financial injection is set to expedite Mithu’s market entry, enabling the company to provide better service to its clients and users.
Adaverse’s founding partner, Vincent Li, conveyed excitement about the investment in Mithu, acknowledging the extensive experience of Mithu’s founding team in the restaurant and retail sectors. Li recognized the immense potential to revolutionize this vertical in Saudi Arabia and expressed eagerness to contribute to this transformative journey. Adaverse aims to leverage its global technological expertise and Web3 knowledge to support Mithu in creating innovative solutions. This unique blend of industry insights, technological capabilities, and market opportunities positions Mithu for substantial success and growth.
Leadership and Vision
The leadership team at Mithu brings a wealth of expertise, positioning the company at the forefront of innovation in Web3, artificial intelligence (AI), and customer loyalty. CEO Mohsin Qureshi has over 15 years of experience in food technology, quick-commerce (q-commerce), and technology startups. He has held significant leadership roles at prominent companies such as Foodics, Cheetay, and Delivery Hero. CTO Asif Ali complements this experience with his background in leadership positions at Careem, Swvl, and foodpanda, while currently pursuing a Ph.D. in AI.
Future Prospects
With the combined strengths of Adaverse’s investment and expertise, and Mithu’s innovative approach and experienced leadership, the company is well-positioned to make a significant impact on the loyalty program market in Saudi Arabia and beyond. The partnership is expected to not only enhance customer retention for businesses but also streamline the management of loyalty programs for consumers, reducing the inefficiencies and frustrations currently associated with such systems. As Mithu continues to develop and expand its platform, the company’s growth and success are anticipated to set a new standard in the industry, offering a seamless and engaging loyalty experience for both businesses and customers.