This allegedly serves as the former Corona app, known as Luca.
Post-pandemic, the Corona-App Luca aimed to shift gears and function as a digital payment service. Nevertheless, its debut was not smooth sailing. Now, there's a sign of an indirect investment by a prominent real estate conglomerate - with a fresh plan.
Documents in the commercial register reveal that noted German app developer Culture4life, operating the ex-Corona contact-tracing app Luca, has secured a new investor. This investor is Panopano Limited - a subsidiary of the publicly listed real estate giant Aroundtown, with an estimated market value of roughly three billion euros.
In a capital increase in early May, Panopano Limited bagged a somewhat considerable share of around 10% in the Luca app. The developers have yet to announce this funding round publicly. However, an app representative confirmed the investment without disclosing the amount. Thus, Aroundtown joins the ranks among Luca's major shareholders.
This financial injection could potentially turn the tide for Luca, following a disappointing relaunch. Co-founder Patrick Hennig initially crafted the application for contact tracing during the pandemic, boasting over 40 million downloads. However, the application's importance waned post-lifting of contact restrictions in 2022.
Emphasis on Hospitality
Hennig and the team then altered tactics, converting Luca into a payment app, with restaurateurs still as partners. Investors donated another 40 million euros for this initiative. Regrettably, the relaunch didn't meet expectations, as reported by "Finance Forward" towards the end of 2022.
At the time, there were 150 participating restaurants – less than the promised 9,200 kitchens, as per a company presentation. Now, the app has more than 1,000 restaurants "using" it, according to the company's statement. Monthly downloads also reportedly lie far below Corona-era figures.
The Stuttgart-based company could probably benefit from some growth catalysts. It seems that there's hope sustained for businesses beyond dining, as the representative further explained. Since the turn of the year, they've significantly digitized laborious processes in hotels using the Luca app, such as bar payments or check-ins.
The new investor may now unlock the necessary access. Aroundtown claims to own one of Germany's largest portfolios of commercial properties, constituting approximately one-fifth hotels, including Hilton hotels in Berlin or London.
This information was initially published in "Finance Forward", the magazine for the evolving financial landscape, conceived in collaboration between "Capital" and OMR.
The investment by Panopano Limited, a subsidiary of Aroundtown, might provide the necessary measures to combat Luca's post-relaunch struggles. With Aroundtown's extensive portfolio of commercial properties, including many hotels, the partnership could open up opportunities for Luca's digitization of hospitality services.
