Mobile reward app startup Drop secures $44 million Series B funding to help shoppers earn more on everyday purchases
Drop, a tech startup that provides a mobile reward app to help you find deals at the places you love, and automatically get rewarded, has raised $44 million USD Series B investment to further its mission of rewarding consumers by delivering relevant deals right to their smartphones. The round was led by HOF Capital, with participation from returning investors including New Enterprise Associates (NEA), Sierra Ventures and White Star Capital. Additionally, Royal Bank of Canada is joining as a strategic investor.
The investment will also help to accelerate Drop’s fast-paced growth, which includes adding new partners, users, and features, continuing to expand its Toronto and New York teams, and entering new markets including the UK and Australia.
Founded just a couple of years agor, Drop, is a rewards company on a mission to level-up the way consumers shop. Using the free app available on iOS and Android, Drop builds a personalized rewards experience from over 300 partner brands. Users earn points when they shop using the app, and can redeem their Drop points for gift cards at places like Uber Eats, Starbucks, and Sephora. To date, Drop has over 3 million users and has rewarded over $19 million to consumers. To date, Drop has driven more than $350 million in sales for their partners, which include Postmates, Expedia and Glossier.
Drop allows users to earn cash rewards when they make purchases from over 300 merchant partners. Users have collectively earned nearly $19 million in rewards on their everyday purchases. In addition, the platform connects brand partners with millions of millennial shoppers who have demonstrated an interest in their brands.
“By applying machine learning to our users’ transactions, we are able to surface relevant, personalized offers for consumers as well as help marketers gain a more complete understanding of their customers and competition,” said Derrick Fung, CEO, Drop. “This is a big win for the brands on our platform, and also for the millions of smart shoppers who are looking for ways to earn rewards and level-up their shopping experience.”
The latest round of funding comes on the heels of Drop’s recent acquisition of Canopy Labs, a YC-backed predictive analytics software company focused on improving and optimizing customer journeys. The investment will allow Drop to continue to innovate its user experience, expand its machine learning capabilities, and drive further value for its users and partners.
“Derrick and his team have built an innovative product with best-in-class user growth and engagement,” said Onsi Sawiris, Co-Founder and Managing Partner at HOF Capital. “We are excited by the new opportunities Drop is creating for both consumers and brands and are proud to partner with them as they re-define the rewards space.”