INSIGHTS / News

Lux Rewards, a start-up founded in Bath and shaped by the city’s thriving entrepreneurial ecosystem, has been acquired at an eight-figure valuation in a deal that will make its founder, James Courtney, 30, a millionaire.

This company has seen it all, nearly going under twice. Now, they’re a major player in loyalty, serving over 105 million cardholders across the globe.

Founded in 2015 by Bristol-born James Courtney while studying at the University of Bath, aged just 21, Lux Rewards started as a dining rewards app, connecting customers with high-end restaurants. Despite early backing from the Just Eat Accelerator and local angel investors, the start-up struggled in its early years. At one point in 2019, the business was just two weeks from shutting down entirely.

“I had put everything into Lux Rewards,” said Courtney. “In those early days, I was literally walking into restaurants, trying to convince them to join the platform. I even worked with The Clifton Sausage to hand out free samples on the streets of Bath just to get people to download the app.”

Despite relentless efforts, growth remained elusive. One particularly painful moment came when Courtney spent £1,000 to put on an exclusive event at a wine bar, offering free wine and tapas in a bid to win over a major Bristol accounting firm. “Only one person turned up,” he recalled. “It was the most embarrassing day of my life.”

By early 2020, Courtney had resigned himself to the business failing. A 2020 Crowdcube raise provided crucial funding, but COVID-19 hit just as the round closed. With restaurants closed and the business burning over £25,000 per month, Courtney, with his team on furlough, moved back home, assuming it was the end.

“Being away from London and the constant pressure to raise money was the reset I didn’t know I needed,” Courtney reflected. “I felt more grounded, physically and mentally. I ran my first Couch to 5K, spent quality time with my dad—who himself has built six businesses—and for the first time in years, I saw things clearly. That space allowed me to rediscover my positivity and rethink our approach.”

Instead of focusing on direct consumer downloads, Lux Rewards pivoted to partnering with banks, airlines, and employee benefit platforms to access their hefty customer bases. This shift, combined with a successful Crowdcube raise, gave the business the traction it needed.

Lux Rewards was supported by SETsquared Bath and pitched at several SETsquared Investment Showcases. Prior to this founder James was a two-time winner of the University of Bath’s Business Plan Competition and was an Entrepreneurship Scholarship Awardee.