The company behind receipt-app Kwick raise $1,2 million in a seed funding round from financier Staffan Persson and WM Data founder Thord Wilkne.
ET Network was launched in 2011. The co-founder Rickard Holmén says that the company since then has tested all kind of possible methods to digitalize receipts, with varying success. The hurdles have been overcome now.
“Everybody knows that digital receipts are the future. But to solve the task itself, to actually perform the entire process, has been an enormous challenge. The solution must be simple to use, everything must work technically and it has to be classed as approved bookkeeping information. We are there with our product now. I have to say that it is very satisfying”, he says.
Contrary to most receipt apps where the purpose is for users to photograph a paper receipt with the mobile, ET Networks service Kwick is built on the principle that receipts are digital already from the start.
Here is an example of how the service works:
An employee at a major Swedish company takes a cab while on duty and pays with the company card processed. A digital receipt is automatically sent to the employees mobile. The mobile app in turn is linked to the company’s bookkeeping system.
“It feels like a real stamp of approval to have them with us.” – Rickard Holmén.
The company, for instance Nordea bank, are customers at ET Networks and they pay to use the service. For traders, hotels and travel agencies (all players where the card is processed) the service is free of charge.
“The companies that integrate in to our system see a competitive advantage. We are already noticing for instance how Taxi Stockholm – who are connected to us – get more customers since people want to travel with them to avoid paper receipts”, Rickard Holmén says.
ET Network has raised $1.2 in venture capital now, in a round led by financier Staffan Persson* and WM Data founder Thord Wilkne.
“It feels really good to get Staffan and Thord aboard. They are very experienced people with a lot of knowledge regarding fintech. It feels like a real stamp of approval to have them with us”, Rickard Holmén says.
According to documents from the Swedish Companies Registration Office, the Gothenburg family Tilander, who have invested in among others the headphone company Zound Industries, also participated in the round.
The plan now for ET Network is to expand by bringing in more customers and more partners into the system.
“Our short term goal is to build a digital infrastructure for receipts in the Nordic countries. It is a system change which affects a vast number of companies, everything from governmental institutions purchasing coffee and milk to airlines which transport a lot of business travelers. That establishment in itself is a very big deal” Rickard Holmén says.
The company has expanded its salesforce with four people, with the aim to increase its customer base heavily next year.
The plan long term is to allow customers to use the transaction data that is generated in the system in order to save money.
“We will not share the customer’s data with other companies if the customers themselves do not wish so. But we believe that our clients will be very interested in using our analytical tools to find out how much they spend on taxi for instance, or milk, or whatever it might be” Rickard Holmén says.
*Transparency: Staffan Persson has also invested in Breakit, the owner of Swedish Startup Space.