Source: Tech Crunch
Commerce and marketing are radically changing these days. Consumers are increasingly looking for brands they identify with, while at the same time, the cost of acquiring users is increasing year-over-year for marketers. For brands, that math makes marketing complicated: they want to reach the right customers with the most efficient acquisition channels in order to drive the best return.
Toronto-headquartered Drop thinks it has a formula — and one that might put some dollars (Canadian and U.S.) in consumers’ pockets. Drop is a mobile app that scans your credit card purchases and then proceeds to give you offers on things you might want to spend money on.
Those offers have now led to a big offer from VCs, to the tune of a $44 million Series B round of capital led by Onsi Sawiris of HOF Capital. In addition, the Royal Bank of Canada joined the round as a strategic investor.
When we last caught up with CEO and founder Derrick Fung, Drop had recently raised its Series A from NEA. In the interim, the startup has continued to grow rapidly, providing customers $19 million in rewards and helping to drive $350 million in sales to 300 merchant partners, according to the company.
Fung said that “our thesis … from two years ago is generally the same: consumers, especially this new generation of consumers, are all looking for new ways to save money and improve their financial health.” Meanwhile, “with retailers, they’re all hungry to find more cost-effective ways to market. And I’d say more than ever before, Facebook, Google, and the traditional platforms are just very expensive.”