Drop Rewards App Earns $5.5 Million, Expands to U.S. Market
Toronto’s Drop, a millennial-focused mobile rewards app, is launching in the U.S. with $5.5 million in new capital.
The seed funding round was led by Sierra Ventures with participation from White Star Capital, ff Venture Capital, Portag3 Ventures and HOF Capital. The United States marks the first international market Canadian-based Drop is entering.
“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, managing director 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.”
Drop’s personalized loyalty program rewards users based on what they buy and how much they spend, without having to sign up for brand or store-specific rewards cards. Through the mobile app, users can link their credit and debit cards, while the platform will keep track of collected points.
“Drop offers what young people want: a seamless experience,” said CEO Derrick Fung in a release. “We are incredibly excited to begin our expansion into the U.S. to give millennials a platform to earn the easiest rewards they’ve ever earned, doing what they already do daily.”
The Drop app is a departure from traditional credit card rewards programs as their model pushes merchants to fund points. In turn, retailers can gain knowledge about their consumers through data collected about the shopping habits of Drop users.
Both physical and online retailers are featured on Drop’s mobile platform including Sephora, Bloomingdales, The Body Shop, Amazon, Under Armour, MeUndies, Boxed and more. Drop is available for download on iOS and Android.