Jozi-based closed-loop payments startup Allxs out to raise R10m funding round

Allxs, a Joburg-based startup that has developed a closed-loop cashless payments platform, is looking to raise a R10-million funding round, its founder Raphael Domalik has revealed.

Allxs specialises in near-field communication (NFC) enabled cashless payments, access control, ticketing solutions, mobile apps and consumer engagement tools. Domalik founded the startup in 2016.

The startup — which employs a seven-strong team — services clients that include The Compass Group, The Wanderers Club, World Sports, Pick n Pay, Sun International, and Iveri Global Payments.

Allxs’ solutions have been deployed at schools, events and in corporate catering

Allxs has also deployed its solutions in a number of academic institutions that include the African Leadership Academy, St John’s College, Kingsmead College and the Helpmekaar College.

Since launch Allxs has largely been bootstrapped and Domalik told Ventureburn in a phone call yesterday (1 April), that he’s invested about R5-million into the startup.

International expansion

“We are currently operating in South Africa, Zimbabwe, with sites going live in Mozambique, Mauritius, Kenya and Rwanda in the next few months,” Domalik said in an earlier interview last month.

While the startup has deployed its solutions across a number of sectors, it has been successfully piloting features across schools and servicing a number of events, for the past three years.

Domalik pointed out that at schools Allxs has been able to offer a “safer campus experience”, while giving parents more control over their children’s spending habits and dietary restrictions.

When it comes to events, he said the startup has been able to reduce stock and cash shortages, increase service speeds and remove the laborious administration processes connected with cashing up and stock control.

“Wildfees which is one of our flagship events saw an increase of 20% in sales year-on-year with a 10% drop in attendance breaking their all-time-bar sales record,” he added. He said Allxs has also been gaining “significant traction” in the area of corporate catering.

‘Go to market year’

Over the years Domalik has been involved in founding a number of tech initiatives in the country. These include the SA job site Pnet, the music social network Powerzone and artist development firm Sovereign Entertainment.

The idea for Allxs, he said, was born out of a 30-city tour of the US he embarked upon in 2010 with SA rock band The Parlotones.

Last November, the startup was one of 12 selected to join venture capital firm Knife Capital‘s Grindstone Accelerator programme (see this story).

He believes 2019 is Allxs’ official “go to market year”. “Even though we have been active in the market for the past 36 months we think of this as our proof-of-concept period in various verticals with our early adopter client base.”

“We have kicked off our extensive growth strategy which includes funding, marketing, scaling our team and significant strategic alliances that will see Allxs through a major growth curve in the coming months,” he added.

Read more: Knife Capital announces participants in fourth cohort of Grindstone Accelerator

Featured image: Allxs (Facebook)