Loyalty app Fetch Rewards has raised $210 million in an investment round led by SoftBank Vision Fund 2. The Series D funding round raised the company’s valuation to more than $1 billion.
The app awards consumers points for scanning their shopping receipts, which can then be exchanged for gift cards. The rewards solution has seen its user base grow from 2.5 million at the beginning of the pandemic to 7 million monthly active users. It currently partners with 500 brands, including consumer-packed-goods (CPG) giants PepsiCo and Unilever, Reuters reported.
“Everyone’s looking to connect with their consumers more than ever,” said Fetch Rewards founder and CEO Wes Schroll.
The Wisconsin-based company’s growth underpins a shift in how retailers are looking to market to their customers, especially as advertising opportunities have dried up with consumers spending more time at home. The company’s solution crunches data on consumers’ spending patterns and shopping habits to offer businesses such as restaurants and drug store chains with valuable insights about their customers.
Looking ahead, the company has plans to expand to other English-speaking countries outside the United States — something Softbank’s CEO Masayoshi Son believes will help the startup expand its operations globally.
The startup is currently in loss, but has annual sales of more than $100 million.