Arcube Raises $1.5M to boost AI-driven airline loyalty and revenue tools.

Manchester-based travel-tech startup Arcube has raised $1.5 million in seed funding to expand its AI-powered airline loyalty platform. The round was co-led by Fuel Ventures and Oxford Capital Partners, with support from notable industry figures including the Chairman and former CEO of Pegasus Airlines and the founders of PointsYeah.com.

Founded by University of Manchester graduates Prithveesh Reddy and Harvey Lowe, Arcube is headquartered at Sister, the city’s innovation hub. The company has developed what it calls the world’s first post-flight solution to help airlines improve loyalty and ancillary revenue using real-time data.

Arcube’s core product, the Passenger Intelligence Platform, analyzes passenger behavior after a flight and suggests relevant upsells like lounge access or fast-track security. This technology was piloted by Etihad Airways and delivered $1.6 million in additional revenue from just 1,300 passengers, increasing average order value by 10.3%.

Airlines often struggle to retain occasional flyers, with many passengers holding loyalty points that are too low to redeem. Arcube allows those points to be used for ancillaries on future bookings, encouraging repeat business. Reddy said, “Airlines have vast amounts of passenger data... but much of it goes unused. Our platform bridges that gap by offering tailored, real-time options to passengers as soon as they get off the flight.”

Lowe and Reddy began developing Arcube while still students. They participated in entrepreneurship courses and received early-stage support from the Masood Entrepreneurship Centre at the University of Manchester. They later won the Venture Further Awards in the Technology category.

Breaking into the airline industry wasn’t easy. Lowe said, “We didn’t have a track record, so we offered to build the software at our own risk, asking only for a share of the additional revenue we could generate.” This bold approach paid off when Etihad agreed to a pilot that validated Arcube’s model.

Their insight into loyalty challenges came from their own flying experiences. Originally from India and the Isle of Man, Reddy and Lowe noticed that current loyalty schemes rarely benefit casual travelers. Most passengers don’t earn enough points to redeem meaningful rewards, leaving them disengaged from programs that cost airlines billions to run.

Their technology changes that by letting airlines offer real value in exchange for unused miles. A flyer who endured long queues at Heathrow, for example, might be offered a fast-track pass on their next trip—turning a bad experience into a reason to return.

Arcube's mission aligns with a broader industry trend. As airfare has dropped due to price comparison platforms, airlines have become increasingly reliant on ancillary revenue—now representing up to 56% of income for some carriers and totaling $148 billion globally in 2024.

Fuel Ventures’ Mahesh Santiapillai commented, “What Harvey and Prith have developed allows an airline to not only grow ancillary revenue but build customer loyalty and stickiness... a truly unique product offering.”

Arcube’s founders, both of whom had built and exited companies before the age of 18, now aim to scale their platform globally. The company is already in talks with 14 airlines and is looking to expand beyond aviation into car rentals, cruises, and hotels.

Their work will continue to benefit from the University of Manchester’s innovation ecosystem. Professor Aline Miller of Unit M, which supports startups through research and skills connections, said, “The energetic Arcube team and their early success at securing funding demonstrate that Manchester is a place where we have built the ecosystem for ideas, creativity and entrepreneurship to succeed.”

The arcube funding round marks a major step forward in reshaping travel loyalty, turning underused data into personalized customer experiences that drive revenue and retention.

‍