Alfa-Bank is in the process of acquiring Netmonet, a startup that uses QR codes to automate tips in restaurants, cafés and beauty salons. In an agreement signed last month, the Russian lender is committed to acquire the company fully for an undisclosed amount.
Forbes Russia has estimated Netmonet’s valuation at approximately $4 million — a sizeable amount by local standards for a startup launched just a year and a half ago.
In outlets using Netmonet, tips are paid electronically using a smartphone. No app download is required from customers.
Netmonet claims that the volume of tips increases from a 5-7% industry average to some 12% of bill amounts in outlets that adopt its solution. Outlet owners may also take advantage of interesting analytical and customer loyalty functions.
In just one month, this past January, the app generated 86 million rubles (nearly $1.2 million) in tips. This is the leading electronic tip service in Russia, according to Alfa Bank.
Among Netmonet’s competitors is SberFood (previously known as Plazius). However, using this service requires to download an app, creating a barrier for many customers, Forbes Russia notes.
The app was created by Yevgeny Vysotsky, a young McKinsey consultant, and his friend programmer Andrey Volodin. They received funding from three business angels — including former Sistema Vice-President Yevgeny Chuikov — who brought in 10 million rubles (around $150,000). As reported by Forbes Russia, the startup experienced hard times during Russia’s lockdown last spring, but its operations have resumed and grown fast since summer 2020.
Sources: Alfa Bank, Forbes Russia
