AAA Drop hits series B with $44m

Drop hits series B with $44m

Canada-based customer loyalty scheme provider Drop completed a $44m series B round that included financial services firm Royal Bank of Canada yesterday.

The round was led by investment firm Hof Capital and also featured venture capital fund White Star Capital and VC firms New Enterprise Associates (NEA) and Sierra Ventures.

Founded in 2015, Drop offers a customer rewards scheme with more than 3 million users that is geared toward millennials and accessed through a machine learning-powered mobile app.

Customers earn points when shopping at one of Drop’s 300-plus partners that can then be exchanged for gift cards, giving the partners insights into their customers’ purchasing behaviour and competitors in the market.

The capital will go to improving Drop’s user experience, value proposition and underlying technology. Drop will also seek out additional partners, expand its product features and increase headcount while entering new markets like UK and Australia and extending its existing North American presence.

Drop formally launched in 2016 with $770,000 of funding from FF Venture Capital, White Star, Highline.vc and Rothenberg Ventures before adding $5.5m in a late-2017 seed round led by Sierra Ventures that included White Star, FF Venture Capital, Portag3 Ventures and HOF Capital.

NEA led a $21m series A round for the company in January 2018 that was backed by Sierra Ventures, White Star, FF Venture Capital, Portag3 Ventures and venture debt firm Silicon Valley Bank.

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