Aequitas Capital's PE Group Invests in Tech Company Mogl That Made Breakthrough With Offline Shoppers

Aug 12, 2015, 08:38 ET from Aequitas Capital

LAKE OSWEGO, Ore., Aug. 12, 2015 /PRNewswire/ -- Aequitas Capital, a diversified financial services company, has made a growth equity investment in Mogl, a tech company that provides card-linked offer services, enabling retailers to convert on-line visits to off-line business by allowing companies to seamlessly apply discounts to a consumer's credit card in real-time. 

Mogl works by offering online discounts to customers who want to purchase a service. The company, which has primarily focused on the restaurant industry, will use funds from this capital raise to expand into new industries and partner with organizations that already have large consumer or merchant bases in place. 

Mogl customers sign up on a free mobile app, and link their Visa, MasterCard or American Express credit card to Mogl's mobile network. They can then explore the app for restaurant deals in their designated city, further specifying by restaurant if desired. The customer then selects a deal he or she wants to use, or accepts one through a Mogl notification. The discount is seamlessly applied when they pay for their meal without further steps required by the consumer or server. The merchant is then immediately notified by mobile device that the offer has been redeemed and the consumer can elect to either keep the savings or donate it to a charity.

The company's mobile application is available on its website, https://www.mogl.com/.

The proprietary technology is significant because it allows merchants to track in real-time the effectiveness of their incentives, and modify their business accordingly by, for instance, limiting deals to certain hours or days. Restaurants typically lower prices to draw in customers during off-peak hours. But before Mogl, they lacked a way to determine whether—or when— the incentives are being used. Now they are able to increase their ability to stimulate business during slow times by adjusting discounts based on demand, all while gaining new insights into the consumer behavior of their patrons. Offline retailers can now take advantage of benefits enjoyed by online retailers.

"Mogl has cracked the code on how to boost offline retail business by connecting offline shoppers to online card-linked offers, then instantaneously tracking the success of those offers," said William Ruh, Managing Principal of Private Equity, Aequitas Capital. "Mogl seamlessly connects consumers to great deals without the hassle of coupons, loyalty cards or punch cards, while arming merchants with a new tool to gain a competitive edge. This type of disruptive, technological power is precisely what we look for in our private equity group."

Mogl also gamifies the process, meaning that merchants can, for example, offer a gift card to the customer who spends the most money in a given month according to the credit/debit card data. Additionally, it has implemented a feature that allows customers to link their credit card rebates to a whole variety of food banks to help fight hunger.

Mogl recently struck a deal to offer trial memberships to LivingSocial customers, linking the online marketplace's daily coupon services to credit cards to simplify transactions. The investment will help the company fuel similar partnerships.

Mogl was the first company to sign all three of the big credit card carriers using card-linked offers technology.

"Mogl has gained significant traction in the marketplace, particularly in the San Diego area, and we are scheduled to launch soon in Houston and Dallas," said Mogl CEO Jon Carder. "With the investment from Aequitas Capital, Mogl is better positioned to strike new partnerships, grow its merchant and customer base, gain more exposure, and expand nationally into new markets."

Mogl is poised to disrupt the restaurant industry, which has roughly $700 billion in annual sales and is growing by about four percent each year. The company recently completed a study with Visa that shows restaurants that use Mogl's services increase their sales by 20 percent on average, with some restaurants achieving more than 400 percent in sales growth. 

With this development, Aequitas joins a broad group of prominent investors committed to Mogl, including Avalon Ventures, Sigma Ventures, Austin Ventures, Correlation Ventures, and Richard Branson

About Aequitas Capital
Founded in 1993, Aequitas Capital is a diversified financial services company that creates alternative investments including private equity, private credit and specialty finance. The firm leverages its network and team of industry specialists to uncover opportunities in the traditionally underserved sectors of healthcare, education and financial services. Aequitas helps its portfolio companies and strategic partners reach their goals by providing management expertise, technology infrastructure and a network of support services. 

For more information, please visit www.aequitascapital.com.

Aequitas Media Contact:
Dana Taorminadtaormina@jcprinc.com (973) 850-7305

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