utu raises $33M and buys CardsPal to give tourists miles or 120% vouchers on VAT refunds

A travel-tech company whose Tax Free Card converts VAT refunds into miles, hotel points or store vouchers.

That shoppers will take airline miles or store vouchers worth more than their VAT refund, and that airlines, hotels and retailers will pay to drive tourist loyalty.

$33M Series B.

Co-founder Asad Jumabhoy spent eight years in duty-free and then 25 in tax-free shopping; he started a tax refund business at Changi Airport that evolved into Global Blue and sold it in 2012. utu applies that retail-margin and VAT knowledge to give tourists more value than the refund.

During the pandemic utu built partnerships with travel, hotel and retail brands. In June 2023 it raised a $33M Series B including SC Ventures and acquired Singapore fintech CardsPal for a marketplace, promotions engine and merchant portal, speeding rollout in France, Italy and about 50 other VAT and GST refund countries.

Tourists get only part of their VAT back, which leaves room for extra value.

Airlines, hotels and retailers want loyalty and more tourist spend, which utu says it can grow by up to 40%.

CardsPal adds a digital marketplace, a promotions engine and self-service merchant registration.

Jumabhoy's long experience in tax refunds and retail margins informs the product.

Building on top of incumbent refund rails, not replacing them, lets a startup pitch partners a loyalty and revenue gain without rebuilding the tax infrastructure.

As of 2023-06-25 utu had closed the $33M Series B, bought CardsPal and had 10 airline partners, with more partnerships promised later that year; the 40% revenue uplift claim is utu's own.