pcJ News Briefs – Drop, a Toronto based millennial-focused rewards program, has announced the launch of its platform in the US market.
Drop has also announced the closing of US $5.5 million or CDN $7 million seed financing led by Sierra Ventures with participation from White Star Capital, ff Venture Capital, Portag3 Ventures and HOF Capital. The seed financing was reportedly closed in February 2017.
Drop introduces a truly seamless, cross-merchant rewards experience to the market that allows members to earn points without having to sign-up for specific brand loyalty programs. The Drop app lets members accrue points while shopping their favorite brands, even if they don’t use a credit card.
photo credit: Drop
Drop, First Truly Flexible Mobile Rewards Program, Launches in US, Closes $5.5M Seed Round
Fueled by capital infusion, Toronto-based Drop makes foray into the US market to help millennials earn rewards easily while shopping with their favorite brands
October 10, 2017 10:10 AM Eastern Daylight Time
TORONTO–(BUSINESS WIRE)–Drop, a millennial-focused rewards program, today announced the launch of its platform in the US market fueled by a $5,500,000 venture capital infusion. The seed round was led by Sierra Ventures with participation from White Star Capital, ff Venture Capital, Portag3 Ventures and HOF Capital.
Drop positions itself as the most user-friendly, flexible rewards program with all rewards generated in-app, without the need for countless brand-specific cards or accounts. Further proving its consumer-first model, Drop allows members to link either their credit and/or debit card to the app, so points are always collected, regardless of the card consumers choose to use when spending.
Drop introduces a truly seamless, cross-merchant rewards experience to the market that allows members to earn points without having to sign-up for specific brand loyalty programs. Brands featured on the platform include Sephora, Bloomingdales, The Body Shop, Amazon, Under Armour, MeUndies, Boxed and more.
“Drop offers what young people want: a seamless experience,” says founder and CEO, Derrick Fung. “We are incredibly excited to begin our expansion into the US to give millennials a platform to earn the easiest rewards they’ve ever earned, doing what they already do daily.”
Drop is a departure from the traditional rewards program, especially in the credit card rewards industry. Traditionally, credit card points have been funded by the “interchange fee,” or the fee paid by merchants to accept that brand of card at their point-of-sale. Instead, Drop is disrupting this model by pushing merchants to fund points.
For brands like the aforementioned, Drop creates a unique opportunity to gain knowledge about consumers that they haven’t had access to before. Since members have the option to link multiple cards to their Drop account, retailers can be provided with a 360º view of shopping habits, which gives a clearer proof of return on investment for the funding of reward points.
“Drop is a unique concept that brings brand-agnostic rewards to millennials to give them a fun, intuitive experience they crave, while also giving brands an opportunity to hook new, loyal customers,” said Mark Fernandes, at Sierra Ventures. “We’re excited to be an integral part of Drop’s international expansion and seeing them scale beyond the massive success they’ve seen in the Canadian market.”
The app is available for iOS and Android. For more information about Drop, visit http://www.earnwithdrop.com.
Drop is a personalized loyalty program focused on bringing value to millennials to make their everyday more rewarding. Designed to fit into any lifestyle, the Drop app lets members accrue points while shopping their favorite brands, even if they don’t use a credit card. Founded in 2015, Drop has built up a base of hundreds of thousands of millennials while reaching No.3 in the App Store. Whether it’s apparel, coffee, sporting goods, or groceries, Drop enables the consumer to earn rewards easily, without disrupting their existing shopping behaviors. This intelligent mobile rewards program surfaces relevant offers and rewards based on spend, creating a personalized, seamless experience for the consumer.