Why we invested in Badger?
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Apolo is investing in Badger, a marketing and loyalty app for local businesses. Here’s our investment memo.
First, a quick reminder of our investment criteria:
Indicator | Status | Comments |
|---|---|---|
LTV/CAC ≥ 3 | ✅ | LTV estimated at ca. 1600 CHF for 18 months. Ideal CAC < 533 CHF. Actual CAC is within this range. |
1 million gross profit after 3 years | confident | Current ARR > 40k, good gross margin. => Confident to reach 1 million gross profit. |
A real and validated problem | ✅ | >80% shop owners struggle to get customers to come back more often. 60% says they lack visibility. + Traction: >100 paying locations. |
V1 can be developed <300k | ✅ | V1 already developed <300k: bootstrapped, coded by Badger team. |
Max 2% of TAM in 3 years | ✅ | Badgers should acquire 1’000 retails, ca. 2% of the Swiss TAM. It’s enough to start. Scaling phase through internationalisation |
Badger in one sentence
Badger simplifies marketing and customer loyalty through a shared digital app for local merchants.
More info on their website: https://www.badgercards.ch/
The Problem
Local businesses want to grow revenue. There are two levers: acquire new customers and retain existing ones.
Big chains have powerful loyalty apps (McDonald’s, Starbucks, etc.). For an independent business, building and maintaining an app is out of reach. Result:
- Most still rely on paper stamp cards—inconvenient and easily lost.
“Customers lose them all the time.” Manager of Pancakes Mafia in Renens.
- Some try Instagram: free but time-consuming, hard to measure, and often disconnected from their real clientele.
“We tested Instagram, but our followers aren’t necessarily the ones who come to eat.” Manager of Nombril de Vénus in Neuchâtel
In short: merchants lack an accessible, simple, effective tool to stay top-of-mind with customers and acquire new ones.
The Solution
Badger mutualizes a loyalty and communication app for neighborhood businesses.
Customers “badge” each visit, earn points, receive offers, and discover new spots.
Merchants get a turnkey tool that’s quick to set up, easy to manage, and built for day-to-day realities.
The business model is a monthly subscription.
“We restaurateurs are trying many ways to bring customers back… and Badger really struck me as an innovative solution.” Manager of L’Echo in Lausanne
Merchants Benefits | Users Benefits |
|---|---|
Boost loyalty and visibility (job to be done) | Be rewarded for your loyalty (job to be done) |
Simple to use for staff | Loyalty cards & programs centralised in one place |
Ease of mind | Smooth and gamified interface |
Onboarding in 2 clicks | No account needed to use Badger (privacy + speed) |
Market Size
Across Switzerland, more than 40,000 businesses fit Badger’s criteria. That’s an opportunity of nearly CHF 60 million in the domestic market over the first three years.
Globally, the total addressable market (TAM) is estimated to be over CHF 50 billion, across roughly 34 million establishments.
Go-to-Market
The beachhead? Replace paper stamp cards in a defined geographic area (Lausanne).
It’s easy for merchants to grasp, aligns with current budgets, and network effects naturally accelerate adoption.
On the customer side, no ads needed to start—the merchants themselves grow the community.
Traction & Unit Economics
By the end of Q2 2025, Badger showed promising results:
- 150+ partner establishments
- 45,000+ users
- ARR > CHF 40k
- 18-month LTV/CAC estimated at 3
Competitive Advantage
Badger stands out with a smooth, simple app for both merchants and customers, plus a unique community layer.
- Ultra-frictionless UX (no account creation, no sensitive data, wallet to come soon).
- Minimal merchant overhead (2-click setup, ready-to-use notifications, clear stats, Google review system).
- Community dimension: businesses benefit from the collective strength of the app, which becomes a true local hub. A playful experience for customers (leaderboards, rewards, etc.).
The Team
Roberto, Paolo, Arthur, and Bruno are childhood friends with complementary skills (design, tech, finance). Their chemistry, open-mindedness, and curiosity shine through in how they’re building the company.
At Apolo, we back startups that solve concrete problems with high-value solutions—and teams that balance strong execution with the ability to question themselves.
Badger checks all the boxes and fits our investment criteria.
We’re proud to be part of the journey.
More to come in the next episode 😉