Rooam, which calls itself the world's first socially connected mobile payment app that allows users to pay for drinks, explore local events and find friends at bars, lounges and clubs, announced that it raised $1.2 million in a seed-funding round from several private investors. The funding is intended to accelerate the full development of its cashless mobile payment app, support product launch initiatives and boost its sales and marketing efforts, according to a press release.

Rooam is currently running a beta program for select users in the Washington, D.C. area and aggressively expanding its network of participating bars and restaurants; the company plans to launch its app this spring, said Junaid Shams, co-founder  and CEO of  Rooam.

"The idea for Rooam developed because I was frustrated with how long it took me to close my bar tab," he said. "We are receiving amazing responses from local bars,  nightclubs and restaurants in the Washington D.C. area, and are excited that our app will dramatically change the way people pay for drinks and experience nightlife. The seed funding will lay the  groundwork for the next city launch."

Shams said the platform will transform the way users plan a night out by offering real-time social media tools to discover events and pinpoint the location of friends in the area.

The app's features include being able to locate friends in real time and instant checkout, eliminating the need to wait in line to pay. Rooam also offers a one-stop mobile payment product that can be integrated with businesses  point-of-sale systems without any additional hardware.