Drop, the mobile rewards app based in Toronto, has raised $59 million in Series B financing, bringing its total funding to date to $95 million. The round was led by New York venture firm HOF Capital, joined by New Enterprise Associates, Sierra Ventures and White Star Capital.
Founded by Derrick Fung, Darren Fung, Akhil Gupta and Cameron Dearsley in 2015, Drop is behind a free mobile app that allows users to earn cash rewards on purchases from more than 300 partner merchants. The company claims to have helped users earn more than $19 million in rewards to date.
Chief executive Derrick Fung said the platform has been applying machine learning to its user transactions to surface relevant, personalised offers for consumers. It also helps marketers gain a more complete understanding of customers and competition.
“This is a big win for the brands on our platform and also the millions of smart shoppers who are looking for ways to earn rewards and level-up their shopping experience.”
In a press release announcing the investment round, Drop said the funding will be used to enhance the company’s machine learning capabilities and support the company’s plans to expand its existing offices in Toronto and New York.
It has also outlined plans to push into new markets, including the UK and Australia.