Startup of the Week: utu

• utu is a travel fintech company, reimagining the conventional tax-free shopping landscape by converting an administrative refund into a rewarding part of the retail experience for global shoppers. It is establishing leadership in the emerging VAT Voucher category

• Each year billions in VAT refunds leave countries, representing a significant missed opportunity for local economies. utu’s model helps recapture this value, by converting refund entitlements into incentives to boost tourist spending

• utu’s VAT Voucher system allows tourists to instantly convert the value of their VAT refund (processed separately by a VAT Refund Operator) into higher-value digital vouchers redeemable at utu partner retailers. The vouchers are designed to enhance the shopper experience while driving  incremental sales for merchants.

 

Website: https://utu.global/utu 

 

 

What Is Utu?

 

utu is a pioneering travel fintech company transforming the way international tourists access value from tax-free shopping. By converting the anticipated value of a VAT refund – processed by a separate VAT Refund Operator – into a higher-value digital voucher, utu offers significantly more spending power at participating retailers before the tourist leaves the country. Live in cities like Milan and Dubai, utu vouchers can be redeemed at a growing network of partner retailers, from duty-free shops to luxury jewellers. This approach enhances the shopping experience for travellers, encourages further spending, while also reinvesting value into the local economy, benefiting tourists and merchants alike.

Ameer Jumabhoy, Co-Founder of utu:

“We founded utu with a clear goal: to reshape the tax refund experience into a meaningful driver of economic growth and shopper satisfaction by pioneering the VAT Voucher market. It’s about turning a routine refund into a moment of unexpected value and instant gratification. Instead of billions in refunds leaving a country, utu helps redirect that value into immediate spending power for tourists, sparking new purchases, supporting local businesses, and enriching the entire travel retail ecosystem.”

 

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What Makes utu Unique?

 

utu stands out for its leadership in the emerging VAT Voucher category – a model we’ve helped define – and for turning a traditionally passive tax refund process into an engaging and rewarding part of the shopping journey.

Unlike others in the space, utu works alongside existing national tax refund systems, adding a new layer of value for both tourists and retailers. Using utu’s web app, travellers can convert the value of their anticipated VAT refund into a higher value utu voucher, issued instantly and redeemable at participating stores.

By partnering directly with retailers and global operators like Avolta, utu helps drive incremental sales, increase basket sizes, and deliver a more compelling, value-led experience for international shoppers while ensuring that more of the refund value stays within the local economy.

Is There A Market for Travel Fintech?

 

Yes, and it’s one that’s increasingly ripe for innovation. Global tourist arrivals are rebounding, with over 1.4 billion international trips taken in 2024 according to the UN World Tourism Organization, representing an 11.5% increase over 2023 and virtually a full recovery to pre-pandemic levels. Meanwhile, the global travel retail market is projected to exceed $145 billion by 2032. Together, these trends highlight a major opportunity to rethink how tourist spending is captured and reinvested into local economies.

utu was created to do just that – by transforming the billions in VAT refunds that typically leave countries into spendable value that stays within the local economy. Our VAT Voucher model lets tourists convert anticipated refunds into higher-value digital vouchers for use at partner retailers, creating a compelling incentive for repeat purchases before departure.

In destinations like Dubai, where gold and jewellery account for over 30% of VAT refund volume – utu is already helping merchants drive incremental sales by increasing tourists’ real-time purchasing power.

As global destinations compete for high-value travellers, fintech solutions like utu’s are becoming essential not only for enhancing the tourist experience, but also maximising the economic return of every visit.

 

What Products Does utu Have?

 

utu’s core offering is the cityside or airside VAT Voucher that allows international travellers to instantly convert the value of their anticipated VAT refund into a higher-value voucher for use at participating retailers. The solution gives tourists greater spending power before departure, while helping local businesses benefit from increased in-destination spending.

Here’s how it works:

• Travellers scan their tax-free receipt using utu’s secure web app.

• The app calculates the anticipated refund value (from their chosen VAT Refund Operator) and offers a utu voucher of higher value for purchase.

• The traveller pays utu the refund amount in exchange for the upsized voucher, which appears instantly on their phone and is also emailed.

• The voucher can be redeemed at participating stores using a unique QR code.

• Travellers then complete the standard tax refund process with their chosen VAT Refund Operator, who returns the original refund to their card or in cash

utu vouchers are currently live at:

• Milan Malpensa Airport, through a partnership with global travel retailer Avolta.

• Dubai’s Gold Souk, including partners such as Thangals Jewellery.

Watch this space for more destinations launching across 2025.