Bitcoin rewards provider Lolli raises $8 million in Series B funding

Lolli, a crypto firm that offers free bitcoin rewards for shopping, has raised $8 million in a Series B funding round.

Bitkraft Ventures led the round, with Sfermion, Ulta Beauty's Prisma Ventures, Hypersphere Ventures, ZebPay's Rahul Pagidipati and others participating, Lolli said Thursday. Existing investors, including Alexis Ohanian's Seven Seven Six, Founders Fund's Pathfinder Ventures, Bain Capital Ventures, Serena Williams' Serena Ventures and Logan Paul, also backed the round.

The funding comes two and a half years after Lolli's Series A round, with an amount lower than that round, which was sized at $10 million. Lolli founder and CEO Alex Adelman said the firm has historically been "very intentional" in raising just the amount needed to reach its next growth phase. "With this round, we have just the right amount needed to win without diluting our existing investors and team," Adelman said.

Lolli started the fundraising process in early 2023 while getting "significant MA interest" in parallel throughout the year, Adelman said — adding that the firm decided to go the fundraising path to remain independent and closed the round in November. He declined to comment on Lolli's valuation with Series B but said it was all equity financing.

As part of the deal, Bitkraft Ventures partner Carlos Pereira has joined Lolli's board, Adelman said — adding that the Bitkraft team's expertise across gaming and immersive technology will help Lolli bring bitcoin to more people through "gamified earning experiences."

Lolli's growth plans

Founded in 2018, Lolli gives shoppers bitcoin or cashback rewards on everyday purchases. The firm says its users have earned more than $10 million in bitcoin rewards to date. Adelman declined to comment on the amount of cashback rewards to date but said Lolli's user base continued to grow over 35% year-over-year as of October. "We also saw a record-breaking holiday season, with an increase in spending on Lolli that surpassed the national average," he said.

To bring more users into crypto, Lolli now plans to tie up with enterprises, similar to how it has partnered with merchants and other companies over the years. "We will be working closely with exchanges, neobanks, banks, payment companies, and browsers to drive increased sales, revenue, and engagement with Lolli's patented rewards technology," Adelman said.

International expansion has also been on Lolli's roadmap since at least 2021. Adelman said the firm will explore those markets next year "when the market is right for global bitcoin rewards adoption."

Lolli Card Boosts

Last year, Lolli also launched an in-store rewards program called Card Boosts. Adelman said the number of stores Lolli users can earn from is currently 25,000, but that is "on track to reach over 100,000 by 2025."

There are currently 20 people working for Lolli, and Adelman looks to expand the team strategically in the new year across various functions. Lolli remains focused on bitcoin rewards but is open to exploring other cryptocurrencies if there is strong user demand, Adelman said.