A Tauranga-based software start-up has raised $1.3 million for future growth.

GoGenerosity gives businesses a way for customers to donate to their favourite local charities at point of sale.

The funding has been raised with an oversubscribed seed funding round led by local private investors, with support from Icehouse Ventures.

The company's founder and CEO Rohan McCloskey was inspired to start the business after becoming concerned with the impact of Covid-19 lockdowns on businesses.

At the time Rohan was still a restaurant owner and trialled a pay-it-forward model at his three Bay of Plenty eateries during the first nationwide lockdown.

After finding success he joined forces with local software marketer Aidan Lett, and GoGenerosity was officially born.

The business has since grown to a team of 10 people, with more than 30 businesses enabling their customers to pay-it-forward with more than $40,000 of food, clothing and pampering paid forward to local people in need.

The growth of GoGenerosity has piqued the interest of Z Energy in the Bay of Plenty, which this month became the startup's newest customer. The partnership allows customers to pay forward their chosen amount so those in need can access free fuel.

The invested funds are being used to expand the team and further develop the GoGenerosity software platform.

Businesses pay GoGenerosity a monthly fee to use the software, coordinate the distribution of goods and services and provide the impact stories back to those who are generous.

GoGenerosity plans to expand its reach nationally and into Australia in 2022, followed by the US in 2023 and Europe, Asia and India in the years to come.

'Over the last year, we've demonstrated that everyday Kiwis are willing to be generous in small amounts regularly, that we can attract high calibre talent and that investors truly believe in technology for good,” says Rohan.

'It's blown us away to see people in our communities receive experiences that lift their self-esteem and give them a sense of dignity that makes them feel valued.

'Backed by our new team of investors, we're able to hire more talented, purpose-driven people and build technology that will bring many small acts of generosity together to make a big difference around the globe.”

The Tauranga Women's Refuge has been one of the main beneficiaries of the generous customers at The Kids Store who use GoGenerosity.

The refuge has received $900 of kids' clothing via The Kids Store.

'When looking for a way to give back, GoGenerosity was the logical choice for us,” says The Kids Store manager Sam Kidd.

'We love the fact that 100 per cent of what we pay forward goes to locals that need it and our customers get to be part of our generosity story.

Tauranga Women's Refuge general manager Hazel Hape says the donations are a big help.

'The thing we love about GoGenerosity is that it allows people to pay-it-forward in many ways,” she says.

'This helps Tauranga Women's Refuge get access to restaurant-quality meals and brand new clothing, which gives the women and children in our community a sense of dignity in such a tough season.”