News / Acquisitions
‘From near bankruptcy to multi-million dollar acquisition’
A Bristol businessman who weathered near financial ruin twice has had the final word, selling his business for a seven-figure sum.
James Courtney, born in Bristol and raised in Keynsham, underwent a rollercoaster of emotions since launching his business, from ecstasy to a downward spiral, and ultimately, a remarkable revival of fortunes.
At the age of 30, James Courtney is now officially a millionaire after selling Lux Rewards, the hospitality cashback app he founded while still a student at University of Bath at the age of 21.
Lux Rewards began as a dining rewards app, connecting customers with high-end restaurants.
A new chapter for Lux Rewards with a multi-million dollar acquisition
Despite early backing from the Just Eat Accelerator and local angel investors, the startup struggled in its early years.
According to Courtney, there was a point in 2019 when the business was just two weeks away from complete shutdown.
He faced a similar crisis during the pandemic, as the hospitality sector dried up, leaving many businesses on the brink of financial ruin.
Courtney said: “I had put everything into Lux Rewards. 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.”
In early 2020, Courtney launched a Crowdcube campaign to raise vital funding for Lux, but the pandemic hit just as the round closed.
With restaurants closed and the business losing over £25,000 per month, Courtney and his team were on furlough, and they thought it was the end of the road despite all the hard work poured in day after day.
The co-founders of Lux Rewards – James Courtney, Tom Munday and Ash Dey have a lot to celebrate
“Being away from London and the constant pressure to raise money was the reset I didn’t know I needed,” Courtney said.
“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.”
While speaking to Bristol24/7, Courtney thanked SETsquared, the university incubator that brings together experts, networking, and funding into one symbiotic ecosystem.
He especially singled out Rosie Bennett, the current innovation lead at SETsquared, who even appeared in a crowdfunding advert as an actor.
The firm’s trajectory changed significantly when the focus shifted from individuals downloading the app to partnering with banks, airlines, and employee benefit platforms to access their large customer bases.
This shift, combined with a successful Crowdcube fundraiser, provided the upward momentum Lux Rewards needed.
The team at Lux Rewards trying the offerings of the cricket-themed bar Sixes
Months of perseverance paid off when Lux Rewards signed a major deal with Barclaycard in 2021, expanding from 1,000 users to over 400,000 overnight.
British Airways and Mastercard soon followed, expanding their offers across the global loyalty market. Today, Lux Rewards reaches over 105 million cardholders worldwide and has achieved four-fold year-on-year revenue growth.
The acquisition by the Essex-based company Enigmatic Smile sets to solidify Lux Rewards’ place in the loyalty tech ecosystem, with the team led by co-founders Tom Munday and Ash Dey staying on to grow the business further.
The acquisition by Enigmatic Smile sets to solidify Lux Rewards’ place in the loyalty tech ecosystem
Courtney remains very much in the driving seat under the acquisition, with the focus now on growing Lux Rewards within Enigmatic Smile.
But this is definitely not the end of Courtney’s entrepreneurial journey. He hopes to be a “serial entrepreneur,” turning ideas into successful business models.
All photos: Lux
Read next:
Our newsletters emailed directly to you
