Hartleys initiates coverage of Rewardle Holdings (RXH) with a...

Hartleys initiates coverage of Rewardle Holdings (RXH) with a "speculative buy" recommendation. "Put simply, RXH is an electronic version of your localcafe 'buy nine and get the 10th coffee free' card. Rather than having your card stamped each time you buy a coffee, with RXH this is done via your smart phone (Rewardle app) or Rewardle card. For customers, Rewardle removes the hassle of having to carry a loyalty card and allows members to redeem points across the entire network plus additional services such as mobile ordering. RXH enables merchants to improve the connection with their customers by offering loyalty points, promotions and eventually payment services. In our view, the impressive network growth achieved so far may be about to generate the revenue required to validate the business model. In the short term, the rapid network growth achieved to date will be used to attract additional media / advertising partners and therefore, additional revenue. As the RXH network expands further, so will the number and size of the brand partners looking to access the RXH network. In addition to driving short-term revenue, these deals will also add value to merchants and increase overall network engagement. The added value is likely to make merchants more likely to pay for the RXH service (SaaS), a substantial longer-term revenue opportunity for RXH."

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