SoftBank leads $210 million investment in consumer-loyalty and retail-rewards app startup Fetch Rewards
Late last year, we wrote about Fetch Rewards after the consumer-loyalty and retail-rewards app raised $80 million in Series C funding to accelerate growth. Fetch Rewards has seen rapid growth during the global pandemic as COVID-19 created a sudden and significant shift in consumer shopping habits. Food retail revenue increased over 25%, total household grocery bills increased, and long-term grocery trends were reversed.
Today, Fetch Rewards announced it has raised more than $210 million in Series D from SoftBank Vision Fund 2, with participation from existing shareholders ICONIQ, DST, Greycroft, and e.ventures. This latest round of funding brings the total amount raised by Fetch Rewards to $328 million. Fetch Rewards is one of the few startups with headquarters outside of Silicon Valley or New York to reach the unicorn valuation milestone.
Founded in 2013 by Daniel Litvak, Tyler Kennedy, and Wes Schroll, The Fetch Rewards app gives users the easiest way to save on everyday purchases by simply scanning their receipt. For our brand partners, the platform allows them to understand a 360-degree view of shopping habits, and to meaningfully reward a customer’s individual loyalty. By working directly with hundreds of popular brands, Fetch Rewards gives shoppers access to savings on tens of thousands of products, whenever and wherever they are purchased.
Since launching in 2017, the Fetch rewards app has been downloaded more than 19 million times and has nearly 7 million active users. To date, Fetch has processed nearly a billion receipts and has delivered more than $120 million in savings to its shoppers.
Fetch Rewards allows shoppers to earn free rewards on their everyday purchases simply by snapping photos of their receipts or submitting electronic receipts. The company was founded on the belief that people should be rewarded for the things they already do. When shoppers snap every receipt after they shop, Fetch Rewards does the work to find the rewards, keeping it easy and fun for shoppers.
Named to the Inc. 5000 list of fastest-growing private companies in the U.S. for the past two years, Fetch Rewards has seen massive growth over the past year as COVID-19 created a sudden and significant shift in consumer shopping habits. Food retail revenue increased over 25%, total household grocery bills increased, and long-term grocery trends were reversed.
Founder and CEO Wes Schroll said: “Innovation, responsiveness, and speed have been key to our growth over the past year. COVID-19 has forced us to adapt to the feedback that our shoppers are giving us. We’ve always cared about what our shoppers say, we exist to make their shopping experiences better. They help to inform a lot of our product strategy.”
This strategy has fueled their rapid growth in 2020, which has continued into 2021. By ramping up the ability to process online receipts, shoppers are given even more ways to earn points. When shoppers buy something, from anywhere, they now have the ability to scan the receipt and get rewarded immediately.
“As we continue to grow and innovate fast, we are thrilled to join the SoftBank Vision Fund 2 portfolio,” said Schroll. “This new partnership will give us the momentum we need to achieve our goal of becoming the world’s rewards platform.”
“We believe Fetch Rewards’ platform delivers a great experience for consumers by rewarding them for their loyalty to their favorite brands,” said Tom Cheung, Partner at SoftBank Investment Advisers. “We look forward to partnering with Wes and the team as they continue to innovate, scale and expand into new markets.”