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Oxford Capital co-leads $1.5 million seed round in Arcube – Reinventing Airline Loyalty

Reinventing Airline Loyalty 

With the rise of low-cost carriers, price comparison, and increased price sensitivity, airline passengers now disproportionately prioritise price over loyalty, and the frequent flyer programmers of years gone by unable to reward passengers sufficiently to counter this. 

Arcube are solving this with a  a new approach to how airlines engage with their customers, generate revenue, and build loyalty, with the industry’s first post-flight engagement platform. 

Arcube’s platform allows airlines to offer personanlised ancillaries to passengers immediately following a flight, which can be purchased with the loyalty points earned for the flight, and redeemed on the next flight. These engagements create revenue opportunities for the airlines, and incentivize the passenger to return to the airline on their next booking. 

In working with Eithad Airways, Arcube’s approach was shown to increase customer spend by 10.3%, and generate a additional $1.6 million in revenue. 

This commercial relationship with Etihad was formed while Arcube’s founders, Prithveesh and Harvey, were still studying at the University of Manchester, and achieved by cold emailing individuals at Etihad. Pritveesh and Harvey’s proven ability to execute is a key reason why we invested.  

Richard Oakley, Investor at Oxford Capital, commented: “Nothing comes easy for early-stage founders, and success is about making things happen against the odds. Prithveesh and Harvey know how to hustle, and this attribute is one of the reasons we believe that they’ll be successful in Arcube.” 

The opportunity to introduce a new innovation to the airline industry has never been greater than it is today. Airlines have access to vast amounts of data, yet much of it remains untapped. Arcube bridges this gap, turning insights into meaningful customer interactions that drive retention and revenue. 

And this $1.5 million seed round, co-led by Oxford Capital and Fuel Ventures, positions them to capitalize on this opportunity and for rapid expansion. 

With conversations already underway with multiple global airlines, Arcube is set to scale its impact beyond aviation, exploring opportunities across the broader travel ecosystem. We’re excited to see what’s next for this impressive team as they continue to challenge convention and bring fresh thinking to an industry ripe for innovation. 

Estimated reading time: 2 min

 

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    1. If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
  2. You are unlikely to be protected if something goes wrong
    1. Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
    2. Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
  3. You won’t get your money back quickly
    1. Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    2. The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
    3. If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.
  4. Don’t put all your eggs in one basket
    1. Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    2. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. https://www.fca.org.uk/investsmart/5-questions-ask-you-invest
  5. The value of your investment can be reduced
    1. The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
    2. These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

 

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.