Bangalore: Mumbai based Loylty Rewardz, a loyalty management firm acquired $1.1M venture debt from SVB (Silicon Valley Bank). The firm claims to be India‘s largest consumer loyalty and rewards management company and manages loyalty programs for about 170 million debit/credit cardholders in the country.

Venture debt, which involves equity convertible deal, is usually sought by start-ups in the face of problems related to providing security in commercial banks. Bijaie Jayaraj, founder and CEO of Loyalty Rewardz didn’t disclose anything on the convertible portion.

Jayaraj said they opted for debt funding instead of equity funding as it is cheaper. With the fund, the founder intends to strengthen the company’s technology and boost its team size, from 123 to 170 in next six to nine months.

Loylty Rewardz offers programs for loyalty marketing and relationship management. Its services are available in many sectors from finance to retail, hospitality, online and travel. Consumers receive reward points for their card transaction which can be later converted to merchandize and services like mobile recharge, air tickets, movie tickets and more. The company aims at expanding its services from existing 170 million card-holders to 200 million card-holders in the next three months.

State Bank Group, Punjab National Bank, Bank of India, Central Bank of India, Citibank, HDFC Bank and Federal Bank constitute the firm’s clientele.