Our ecosystem has been around long enough now to see startups who had their very first days amongst community, go on to scale, support hundreds of jobs and ultimately exit, unlocking wealth and the next generation of investors back into those who follow. We’re happy to celebrate these founders in posts like this.
Today we celebrate James Courtney of Lux Rewards, who started out as a consumer app among our Bristol & Bath meetup communities, back when we we’re called “Yena” and serving only ‘young entrepreneurs’. We’ve watched James pivot, overcome challenges, and stay incredibly resilient throughout – ultimately bringing about the result we see today: an 8 figure exit via acquisition.
Below is the story of how this came to be…
In a remarkable turnaround story, Lux Rewards—the UK-based loyalty tech startup previously on the brink of failure—has been acquired by global rewards giant Enigmatic Smile for an eight-figure valuation. The acquisition marks a defining moment for the startup, which transformed from a struggling consumer app into a powerhouse in card-linked rewards, having generated over £100 million in revenue for their partnered brands.
Founded in 2015 by James Courtney while still at university, aged just 21, Lux Rewards initially launched as a restaurant loyalty app, offering customers cashback on upmarket dining experiences. However, despite early enthusiasm and investment—including backing from the Just Eat Accelerator—the company struggled to scale. At one point in 2019, Lux Rewards was just two weeks from shutting down entirely.
“I had poured everything into this business, but after years of trying to grow the customer base through every method imaginable—Facebook ads, making custom Lux Rewards scratch cards, even handing out sausage samples in exchange for app downloads (!)” said Courtney, CEO and co-founder. “It was demoralising, failing again and again, publicly. I had to accept that the business might not survive.”
A Crowdcube raise in 2020 provided crucial lifeline funding, but just as the round closed, COVID-19 hit, and with restaurants closing their doors – revenue plummeted to zero. With his team on furlough and the business burning over £25,000 per month, Courtney moved back home, assuming it was the end.
“Those weeks after lockdown were some of the hardest, but also the most transformative,” Courtney recalled. “For the first time, I wasn’t just surviving. 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 had space to really think.”
Then came the light bulb moment. “I realised that instead of acquiring customers themselves, we could simply partner with companies that already had millions of them—banks, airlines, and employee benefits platforms. They had the scale, and we had the rewards their customers wanted.”
That realisation changed everything. In 2021, Lux Rewards signed a major deal with Barclaycard, instantly expanding its reach from 5,000 users to 400,000 overnight. British Airways and Mastercard soon followed, expanding their offers across the global loyalty market. By 2024, Lux Rewards had scaled to serve 105 million cardholders and was achieving 4x year-on-year revenue growth.
The addition of two co-founders further strengthened the business. In 2020, Tom Munday joined as co-founder, bringing his expertise in sales and partnerships, while Ash Dey came on board as co-founder and COO in 2021, leveraging his operational and financial acumen to help steer the company’s rapid growth. Their combined efforts played a key role in securing major enterprise partnerships and executing Lux Rewards’ successful pivot.
The acquisition by Enigmatic Smile solidifies Lux Rewards’ place in the loyalty tech ecosystem, combining its reach with Enigmatic Smile’s advanced financial technology. Enigmatic Smile, on a mission to reward 1 billion cardholders worldwide, has been expanding through acquisitions—including Fidel API and now Lux Rewards—to redefine loyalty.
“Lux Rewards’ pivot in 2020 was nothing short of visionary,” said Bish Smeir, CEO of Enigmatic Smile. “Their growth speaks for itself, and their leadership team has built something extraordinary. Together, we’re creating a global loyalty powerhouse.”
For Courtney, the acquisition is the beginning of a new chapter. “People ask if I’m sad to sell my ‘baby,’ but the truth is, I couldn’t be happier,” he said. “For years, I was earning nothing while my friends built corporate careers. I haven’t blown the bank yet but I did buy one of those egg barbecues for my dad and brother, a personal shopping experience for my mum and have enjoyed trips to Dubai and the Philippines in the past couple months.”
“The best part of this has been teaming up with these guys,” said Munday. “It’s rare to find partners who are both good at what they do and genuinely enjoy working together. For now, we’re laser-focused on growing Lux Rewards under Enigmatic Smile. But if history tells us anything, this won’t be the last time you see the three of us building something together.”
