The fintech startup plans to pilot with credit unions over the next quarter.
FOR IMMEDIATE RELEASE - Dec 09, 2024
TORONTO, ON: Toronto-based startup Cyder has raised $1.5 million CAD in pre-seed funding as the company launched its new loyalty platform for credit unions at the Credit Union Tech Forum in Quebec City.
The pre-seed round included investments from MaRS Investment Accelerator Fund (IAF), Desjardins, Aperture Group, and investor and Dragons’ Den star Arlene Dickinson along multiple other angel investors. The pre-seed funding will be used to grow and scale Cyder’s loyalty platform.
The startup’s new loyalty platform, called Cyder Rewards, allows credit unions to redeem and issue rewards to members, onboard local businesses as loyalty partners, and integrate donation options for local charities and causes. The platform is designed to be simple to use so credit unions and partnered merchants can easily launch campaigns.
Founded in 2021, Cyder initially developed a data platform that helps banks ethically acquire real-time data. Now, the startup has expanded its focus to include loyalty solutions tailored to credit unions’ needs. With proven demand in the space, Cyder plans to scale its platform and bring community-centered loyalty programs to Canadian credit unions.
“When speaking to credit unions, we quickly discovered that there is no loyalty solution for them on the market,” said Sukhman Dulay, co-founder and CEO of Cyder. “Most credit unions we spoke to would ask us to develop a loyalty solution for them.”
According to a 2023 PYMNTS report, 37 per cent of credit unions identify themselves as technology ‘laggards,’ yet 35.2 per cent of consumers are willing to switch financial institutions based on loyalty and rewards offers.
Cyder believes its loyalty platform will empower credit unions to innovate and compete with big banks.
“Member loyalty is much more than a transaction. True loyalty goes beyond dollars and cents; it’s also about the values and the economy around us,” says Carrie Forbes, CEO of League Data, a Halifax-based fintech cooperative owned by over 35 Canadian credit unions. “Credit union loyalty programs make a difference well beyond the individual and the financial institution–they help impact communities, small businesses and people in many ways.”
The startup says it created Cyder Rewards to align with credit unions’ altruistic values, aiming to strengthen community ties through local small businesses and social impact.
“Credit unions invented loyalty programs through patronage, however, large banks adopted the concept through points programs, gaining massive success,” said Dulay. “It’s time to take it back. Cyder is helping provide a simple, local, and affordable rewards program that credit unions of all sizes can easily adapt.”
ABOUT CYDER
Founded by Will Christodoulou and Sukhman Dulay, Cyder is a Toronto-based fintech startup that helps financial institutions build tailored loyalty solutions that ethically source data for marketing.
Contact: Sukhman Dulay (CEO & Co-Founder)
Email Address: sukhman@getcyder.com
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